VF Corp (Vans, The North Face) is considering cutting brands and its CFO after a weak quarter, with a 16 % fall in revenue.
All brands fell
Things are going from bad to worse at VF Corp: the group announced a strategic reorganisation in early December, eliminating 500 jobs, but is now reporting disappointing results once again. In the past third quarter, net sales fell 16 % to 2.96 billion dollars (2.7 billion euros). All brands saw their sales fall.
The decline was most pronounced in the Americas (- 24 %), although trainer brand Vans also underperformed in key markets in Europe and Asia. However, the group stresses that the timing of wholesale deliveries has shifted, which would somewhat distort the figures – especially for The North Face and in Europe and the Middle East.
CEO Bracken Darrell nevertheless admits that the company’s “top-line performance was disappointing”. CFO Matt Puckett will therefore step down later this year, while the group is also considering a strategic review of its brand portfolio. VF Corporation’s turnaround plan is starting to bear its first fruit, Darrell believes, but there is still much work to be done.