VF Corporation, the parent company of well-known brands such as The North Face, Vans, and Timberland, has reported a 9% decrease in revenues for the first quarter of fiscal year 2025. This drop follows the recent $1.5 billion USD sale of its Supreme brand to EssilorLuxottica in July.
The company’s revenue for the three-month period ended at $1.9 billion USD, down 9% from the same period last year. When adjusted for constant dollars, the decline is slightly less severe at 8%.
VF President and CEO Bracken Darrell, marking his first year at the helm, expressed cautious optimism. “I feel more energized than ever. While the business is still down, the rate of decline moderated quarter-over-quarter versus Q4 and across almost all our brands,” Darrell stated. He highlighted that the company is on track with its cost-saving goals and emphasized the positive impact of the Supreme sale on the company’s balance sheet.
Brand-specific performance varied, with The North Face experiencing a 3% decline in revenues (or 2% in constant dollars), although direct-to-consumer sales for the brand increased by 6% globally (or 8% in constant dollars). Vans saw a significant 21% drop in revenues, though this was described as a modest improvement from the previous quarter. Timberland reported a 10% decrease in sales (9% in constant dollars), while Dickies experienced a 15% drop (14% in constant dollars).
Looking forward, VF Corporation has reiterated its guidance, aiming for free cash flow and proceeds from non-core physical asset sales to reach approximately $600 million, excluding the Supreme sale, which is expected to conclude by the end of the calendar year 2024.
