VF Corporation experienced a 6% decline in revenues for the second quarter of 2024, amounting to $2.8 billion (£2.1 billion).
- Sales at key brands such as The North Face and Vans decreased by 3% and 11% respectively, impacting overall performance.
- The Asia Pacific region posted a 6% increase in revenue, contributing positively amidst declines elsewhere.
- The company maintained a gross margin of 52.2%, showing a slight improvement from the previous year.
- VF Corporation is focusing on future growth, highlighting progress in its turnaround strategy and cost-saving measures.
VF Corporation has announced a revenue decline of 6% for the second quarter of 2024, marking a significant year-on-year decrease to $2.8 billion (£2.1 billion).
The decline in sales was notably observed across some of its prominent brands, with The North Face and Timberland experiencing a 3% drop, while Vans and Dickies saw an 11% decrease in their sales.
Despite these challenges, the Asia Pacific region delivered a strong performance with a 6% rise in revenue, reaching $392.5 million (£302.5 million), which provided a positive offset to the declines reported in the Americas and EMEA (Europe, the Middle East and Africa) where revenues fell by 10% and 3% respectively.
The company’s gross margin improved slightly to 52.2%, up by 120 basis points from the prior year, indicating better management of cost structures.
Bracken Darrell, President and CEO, remarked, ‘Our results in the quarter met our expectations and reflect a sequential and broad-based improvement in year-on-year trends…and we are on track to reach our previously announced $300m (£231m) savings target by the end of FY25.’
He also highlighted the recent completion of the Supreme divestiture and the payment of VF’s $1 billion (£77 million) term loan due December 2024, noting, ‘Our Americas regional platform is fully operational and showing promising signs, while the performance at Vans is improving.’
For the upcoming third quarter, VF Corporation forecasts revenue to be between $2.7 billion (£2.08 billion) and $2.75 billion (£2.11 billion), representing a further decline of 1% to 3% year-over-year in reported dollars. Adjusted operating income is expected to range from $170 million (£131m) to $200 million (£154).
Overall, VF Corporation is navigating through challenging times with strategic measures aimed at stabilising and promoting future growth.
