Revenue fall for VF Corp in second quarter

Revenue for the Vans brand was down by 21% (23% in constant currency) to US$748.8 million, while The North Face was up by 19% (17% in constant currency) to US$1.13 billion.

Timberland had a revenue decline of 7% (10% in constant currency) to US$488.6 million, while Dickies was down by 8% (9% in constant currency) to US$171.4 million. Finally, Other Brands were up by 6% (4% in constant currency) to US$496.6 million.

Regionally, the Americas were down by 11% to US$1.57 billion in the second quarter, while EMEA was up by 14% (6% in constant currency) to US$1.06 billion and APAC had a 2% increase (6% in constant currency) to US$403.7 million.

By channel, direct-to-consumer (DTC) sales were down by 3% (5% in constant currency) to US$1.11 billion, while wholesale declined by 1% (3% in constant currency) to US$1.92 billion.

For the first half of the 2024 fiscal year as a whole, VF Corp revenue was down by 4% year-on-year (5% in constant currency) to US$5.12 billion.

Revenue for the Vans in the first half was US$1.49 billion, down by 22% (23% in constant currency), while The North Face was up by 16% (15% in constant currency) to US$1.67 billion.

Timberland had a revenue decline of 6% in the fiscal year so far (8% in constant currency) to US$742.5 million, while Dickies was down by 14% to US$308.1 million. Finally Other Brands had an increase of 6% year-on-year (5% in constant currency) to US$916.7 million.

The Americas had a decline of 12% in the first half of the fiscal year (13% in constant currency) to US$2.75 billion, while EMEA was up by 8% (3% in constant currency) to US$1.65 billion. APAC was up by 7% (11% in constant currency) to US$721.9 million.

By channel, DTC had a decline of 3% in the first half to US$2.09 billion, while wholesale was down by 5% (7% in constant currency) to US$3.04 billion.

In the second half of the 2024 fiscal year, VF Corp is predicting a more difficult U.S. wholesale environment and no growth for the Vans brand, expected to significantly impact revenue and profit in a negative way.

CFO Matt Puckett said: “Despite pockets of continued strong performance throughout the first half and solid profit margins in the second quarter, it’s not enough and we are not making sufficient progress at Vans or in the U.S. Our transformation plan, Reinvent, directly addresses these areas in particular and, importantly, commits to lowering our cost structure by US$300 million. Through this effort and our ongoing evaluation of all aspects of our business, we remain laser-focused on cash generation and debt reduction, with the intent to return to growth, drive higher ROIC and reduce leverage.”