Companies

VF Corp reports sequential quarterly improvement

Oct 30, 2024 United States

Although the company’s revenue was still down year-on-year in the second quarter, there were signs of improvement, especially in the performance of Vans, which has weighed on VF’s overall performance

“Our results in the quarter met our expectations and reflect a sequential and broad-based improvement in year-on-year trends. At the same time, we made further progress on our four Reinvent priorities and we are on track to reach our previously announced 300 million US dollars savings target by the end of FY25. Following the completion of the Supreme divestiture on October 1, 2024, we delivered on our commitment to pay down VF’s 1 billion US dollars term loan due December 2024”, commented Bracken Darrell, President and CEO.

Second Quarter Results

In the second quarter of fiscal 2025, which ended on the 28^th of September, VF Corp’s revenue amounted to 2.8 billion US dollars, a decrease of 6% on a reported and currency-neutral basis, as compared to the same period of last year. These results also represent an improvement over the 10% decline recorded in the first quarter.

In this period, The North Face brand’s revenue was 1.09 billion US dollars, down by 3% on a reported basis and 4% on a currency-neutral basis over the same period of fiscal 2024, when it posted a particularly strong quarter with a 19% or 17% on a currency-neutral basis growth.

Vans reported a second quarter revenue decline of 11% on a reported and currency-neutral basis to 667.4 million US dollars, as compared to the same period of the prior year. However, this result also reflects a significant improvement from the 21% decline recorded in the first quarter.

Although still in the red, Timberland’s and Dickies’ performances show a similar trend. On a comparable basis to the second quarter of the prior year, Timberland’s revenue fell by 3% on a reported and currency-neutral basis, up from a decline of 10% or 9% on a currency-neutral basis in the first quarter. Dickies’ revenue fell by 11% on a reported and currency-neutral basis, exceeding the first quarter decline of 15% or 14% on a currency-neutral basis.

In the second quarter of the current fiscal year, VF Corp’s operating income decreased to 273.9 million US dollars from 350.5 million US dollars in the same period last year. However, net income swung to 52 million US dollars from a negative 450 million US dollars in the same period last year.

While the company is making progress on its turnaround plan, reducing its debt to 5.7 billion US dollars at the end of the quarter, a reduction of approximately 446 million US dollars from a year ago, overall revenue remains under pressure.

Outlook

For fiscal 2025, the company expects to achieve revenue of between 2.7 billion US dollars and 2.75 billion US dollars, down in the range of 1% to 3% year-on-year on a reported basis.

Image Credits: saundersinc.com

United States Companies Footwear Quarter Results Results Timberland Vans VF Corp