VF Corporation has announced a strategic transformation as losses continue to pile up at the American fashion group that owns brands like Vans, Kipling and The North Face.
“Reinvent”
The second quarter of the company’s broken fiscal year 2024, ending on 30 September, resulted in a net loss of 450.7 million dollars (424 million euros), three times more than a year earlier. Sales fell by 2 % to 3.0 billion dollars (2.8 billion euros).
Outdoor brand The North Face was the only brand that managed to grow: its sales climbed 19 % to 950.8 million dollars (890 million euros). Footwear brands Timberland and Dickies lost 7 and 8 % in sales respectively. Despite the comeback of skate culture and associated fashion, sales at Vans plummeted the most, by 21 %.
VF sales suffered the most on its home market: in the United States, sales fell 11 % in the second quarter, while the EMEA region accounted for 14 % in growth. In Asia-Pacific, sales climbed 2 %. New CEO Bracken Darrell has immediately responded with a transformation plan – called “Reinvent” – that should ensure better figures in North America, a turnaround at Vans, a 300 million dollar cost reduction and an improved balance sheet.
