Vans Revenues Fall 22%, North Face Brand Sees 12% Growth

  • VF Corp’s Q1 revenues drop to $2.1bn
  • Big four brands down 11%
  • Vans revenues fell 22%
  • Timberland and Dickies revenues decreased by 6% and 20%
  • North Face brand’s revenues rose 12%
  • Remaining brand revenues increased 7%
  • Direct-to-consumer revenues dipped 3%
  • Wholesale revenues fell by 12%
  • International revenues up 3% despite a 2% decline in EMEA region
  • Loss per share down 2% to $0.15
  • Adjusted loss per share at $0.15 compared to Q1 FY23’s earnings of $0.09
  • Revenues expected to be flat for the year
  • CEO Bracken Darrell and CFO Matt Puckett remain optimistic about future growth

VF Corp, an American apparel and footwear company, reported a decline of 8% in its Q1 revenues to $2.1bn (£1.5bn) for the first quarter ending 1 July 2023. The big four brands saw a drop of 11%, with Vans experiencing a 22% decrease in revenues at $737.5m (£576m), Timberland and Dickies down by 6% and 20% to $253.8m (£198m) and $136.6m (£106m) respectively. The North Face brand’s revenues rose 12% to $538.2m (£420m), while the remaining brands increased by 7% to $420.2m (£328m). Direct-to-consumer revenues fell by 3%, and wholesale revenues dropped by 12%. International revenues grew by 3%, despite a 2% decline in EMEA region. The company expects revenues to remain flat for the year, citing ongoing weakness in its wholesale business and a longer-than-anticipated turnaround for Vans. CEO Bracken Darrell expressed confidence in unlocking the company’s potential for growth, while CFO Matt Puckett emphasized their focus on improving operational execution and reducing debt.

Factuality Level: 8
Factuality Justification: The article provides accurate information about VF Corp’s revenue decline and the performance of its brands, as well as the company’s outlook for future growth. It includes quotes from the CEO and CFO that add context to the financial results.
Noise Level: 3
Noise Justification: The article provides relevant information about the company’s financial performance and the CEO’s outlook for future growth, but it lacks in-depth analysis or discussion on potential reasons behind the decline in revenues and does not explore long-term trends or possibilities. It also does not hold powerful people accountable or explore consequences of decisions on those who bear the risks.
Financial Relevance: Yes
Financial Markets Impacted: VF Corp’s stock price may be impacted by the reported decline in revenues and adjusted loss per share.
Financial Rating Justification: The article discusses VF Corp’s financial performance, including revenue declines for some of its brands and a decrease in earnings per share. This information is relevant to investors and could potentially affect the company’s stock price in financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: The article discusses a decline in revenue for VF Corp and its brands, but it does not mention an extreme event happening within the last 48 hours.

Reported publicly: www.retailsector.co.uk