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VF Corp says “business is still down” as it advances reinvention plan

Chloe Burney
08 August 2024

VF Corporation has revealed that the business was down across almost all of its brands during the first quarter of 2024, ending 29 June 2024. Despite this, its outlook remains unchanged.

During the first quarter, VF Corp's revenues were down by 9% to $1.9 billion (down 8% in constant dollars).

As for its brands, The North Face saw a sales dip of 3% and Vans sales fell by 21%, reflecting a modest improvement relative to the previous quarter.

Gross margin was 52%, down 80 basis points, while operating margin was 12.6%, down 1,220 basis points. Loss per share was $0.67 compared to $0.15 the year prior.

Bracken Darrell, President and CEO, said: "As I complete my first year at VF, I feel more energized than ever. While the business is still down, the rate of decline moderated quarter-over-quarter versus Q4 and across almost all our brands. We advanced further on the Reinvent transformation plan.

"We are on track to deliver our targeted cost savings and we have addressed one of our top financial priorities to strengthen the balance sheet with the announced sale of Supreme. Together with the first-class leadership team I have built, we are confident we will continue to make progress to return to growth and drive strong, sustainable value creation at VF."

Looking ahead, the company reiterates guidance for free cash flow plus the proceeds from non-core physical asset sales of approximately $600 million, excluding the impact of its recent sale of Supreme.

The sale of Supreme to EssilorLuxottica was first reported in July and is anticipated to be completed by the end of calendar year.


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