American fashion group VF Corporation saw its revenue stagnate in the first quarter of its latest financial year, but still it managed to halve its losses. The owner of brands like The North Face, Vans and Timberland seems to be back on the right track after a difficult period.
The North Face leads the way
Group revenue did indeed drop 0.5 % to 1.76 billion US dollars (1.6 billion euros), but at the same time, the company managed to reduce its net loss by 55 % to 116.4 million dollars (105 million euros). CEO Bracken Darrel stated with satisfaction that his company managed to exceed expectations by stabilising the sales decrease, while also managing to stem its losses.
The North Face has now overtaken Vans as the biggest brand within the company’s portfolio: the outdoor brand earned 557.4 million dollars (500 million euros) in sales, or 31.66 % of the group revenue. Vans sales fell 15 % to 498 million dollars (450 million euros), ceding first place to its sibling. Timberland holds the third place, accounting for 14.49 % of the group revenue.
These results seem to prove that VF Corporation has found some stability after a period of significant decline. The focus is now on further strengthening profitability and repositioning the brand portfolio in a changing retail landscape. However, Trump’s import tariffs will present a new challenge: at the current levels, they could cost the group an estimated sixty to seventy million dollars in profit in the next fiscal year.
