VF Corp revenues drop despite achieving earnings target

VF Corp saw revenue drop 8% to £1.5 billion ($2 billion) for the first quarter ending 1 July 2023, with growth at The North Face more than offset by declines at Vans, Timberland and Dickies. 

For Q2, VF Corp shared the following brand results:

• Vans revenue down 22% to £576 million ($737.5m).
• The North Face revenue up 12% to £420 million ($538.2m).
• Timberland revenue down 6% to £198 million ($253.8m).
• Dickies revenue down 20% to £106 million ($136.6m).
• Other brand revenue up 7% to £328 million ($420.2m).

The group saw revenues increase 3% across international markets. However, revenue in EMEA dropped 2%, reflecting continued growth in direct-to-consumer but lower wholesale revenue.

Wholesale revenue was down 12%, while direct-to-consumer revenue decreased 3% but up 6% excluding Vans.

Looking ahead, VF Corp expects revenue to be flat for the year, reflecting "ongoing weakness in wholesale and a longer than anticipated turnaround for Vans".

Matt Puckett, CFO of VF Corp, said: "While our Q1 performance is not reflective of our standards, we achieved our earnings target in the quarter.

"We remain focused on improving our operational execution, although it will take time for our revenue performance to benefit from actions that are underway.

"We are well positioned to advance our key priorities this year with an emphasis on increasing operating earnings through improved gross margins, generating healthy cash flow and reducing debt, all of which lead to a strengthened financial position."