Revenues for VF Corporation have declined by 6% during the second quarter.
- Sales for major brands like Vans and The North Face also saw declines.
- Growth was observed in the Asia Pacific region, contrasting declines in other regions.
- Despite revenue challenges, gross margin improved slightly compared to last year.
- The company’s leadership remains optimistic about meeting future financial targets.
Revenues for VF Corporation, which includes brands such as Vans, The North Face, and Timberland, have experienced a decline of 6% for the second quarter ending on 28 September, reaching $2.8 billion (£2.1 billion). Sales specifically for The North Face fell by 3%, while Vans experienced an 11% decrease. Timberland also saw a 3% drop in sales, and Dickies followed with an 11% decrease.
Despite the decrease in revenues, VF Corporation experienced growth in the Asia Pacific region with a 6% rise in revenue to $392.5 million (£302.5 million). However, this was countered by a 10% revenue decline in the Americas and a 3% fall in the EMEA region. The company’s gross margin improved to 52.2%, up 120 basis points compared to the previous year.
Bracken Darrell, President and CEO of VF Corporation, noted that the quarterly results were in line with expectations and reflected a broad improvement in year-on-year trends. He stated, “Our results in the quarter met our expectations and reflect a sequential and broad-based improvement in year-on-year trends…and we are on track to reach our previously announced $300 million (£231 million) savings target by the end of FY25.”
Following the divestiture of Supreme on 1 October 2024, VF Corporation successfully fulfilled its commitment to repay a $1 billion (£77 million) term loan due in December 2024. Darrell highlighted that the Americas regional platform is now fully operational and showing positive signs, with improving performance at Vans.
Looking ahead to the third quarter, VF Corporation anticipates revenue to fall between $2.7 billion (£2.08 billion) and $2.75 billion (£2.11 billion), marking a potential decline of 1% to 3% year-over-year in reported figures. Expected adjusted operating income for this period is projected to range from $170 million (£131 million) to $200 million (£154 million).
VF Corporation remains focused on achieving growth and strong value creation despite current revenue challenges.
