Following yesterday’s release of VF Corp’s figures for the three months ending 28 December 2024; Louise Deglise-Favre, senior apparel analyst at GlobalData, a leading data and analytics company, offers her view: “VF Corp returned to growth, albeit muted, in Q3 FY2024/25, with sales rising 1.9% to $2.8bn. While it might be too early to celebrate, these results are a stark improvement on Q2, where sales fell 5.6%, indicating that the group’s Reinvent strategy is finally starting to bear fruit over a year into its implementation. This brought VF Corp’s year-to-date performance for the nine months to December to a decline of 4.0%, and despite the group beating its own expectations in Q3, VF Corp remains cautious in its guidance for Q4, expecting revenues to fall between 4% and 6%. This comes as it has yet to deliver on the key objectives of its strategy, mainly turning the tide on Vans’ performance.
“Vans’ revenue remained in significant decline in Q3, falling by 9.1%, which was only a minimal improvement on the previous quarter, when sales were down 10.9%, despite efforts to entice shoppers with more trend-led designs, such as its Knu Skool, Upland and Hylane ranges. While these efforts have yielded some results, the brand is in need of a larger overhaul of its product offering to regain relevance within today’s sportswear market, as it still suffers from a stale brand image and lacks fashion credentials. The North Face returned to growth in Q3, with sales rising 5.1%, driven in part by the success of its collaboration with Skims which launched in December and introduced the brand to a wider feminine audience. Timberland sales rose 11.4%, as the brand felt the positive impact of its “Iconic” campaign featuring Naomi Campbell for its Yellow Boot, helping it capitalise on the resurgence of Y2K trends. VF Corp’s final core brand Dickies experienced a decline of 9.7%, due to a weak product offering.
“Performance in the Americas vastly improved in Q3, with constant currency sales rising 2%, and EMEA sales rose 1%, as consumer confidence across the two regions started to show signs of improvement following the gradual softening of inflation. APAC continued to outperform, with sales rising 5%, thanks to sustained appetite for streetwear and outdoor sportswear in the region, with the North Face and Timberland’s revenues growing 16% and 15% respectively.”
