North Face and Vans Owner Sees Progress in Turnaround Plan
- VF Corp’s Q2 revenues fall 6%
- North Face revenues down 3%, Vans revenues down 11%
- Gross margin up 120 basis points to 52.2%
- Expected Q3 revenues $2.7bn – $2.75bn, adjusted operating income $170m – $200m
- CEO Bracken Darrell: ‘on track to reach $300m savings target by FY25’
- Completion of Supreme divestiture in October 2024
VF Corp, the owner of North Face and Vans, reported a 6% drop in revenues to $2.8bn (£2.15bn) for Q2 ended September 2024, an improvement from the 10% decline in Q1. North Face’s revenues decreased by 3%, while Vans saw a 11% drop compared to last year. The company’s gross margin increased to 52.2%, up 120 basis points. With the completion of Supreme divestiture in October 2024, they expect Q3 revenues between $2.7bn (£2.08bn) and $2.75bn (£2.12bn), and an adjusted operating income of $170m (£130.8m) to $200m (£153.9m). CEO Bracken Darrell stated they are on track for a $300m savings target by FY25.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the company’s financial performance, including revenue and margin changes, as well as the CEO’s statement on their progress towards a return to growth. It also mentions the completion of a divestiture and the operational status of their regional platform. However, it contains some minor details that may be considered tangential, such as the specific dollar amounts for Q3 revenue and adjusted operating income ranges.
Noise Level: 3
Noise Justification: The article provides relevant information about the company’s financial performance and outlook but lacks in-depth analysis or discussion of long-term trends or possibilities. It also does not hold powerful people accountable or explore consequences on those who bear risks.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses the financial performance of North Face and Vans owner VF Corp, including revenue drops and gross margin improvements. It also mentions expectations for future revenues and operating income. However, it does not directly impact financial markets or specific companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text and it doesn’t meet the criteria of an extreme event happening in the last 48 hours.
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