Dive Brief:
- VF Corp. reported $2.8 billion in revenue for the third quarter of its 2025 fiscal year, a 2% rise from last year. This marks the first quarterly revenue growth for the apparel conglomerate in over two years.
- Revenue was above the company’s own expectation of between $2.7 billion and $2.75 billion. VF attributed the increase to stronger DTC sales and an “outsized wholesale performance” due to additional reorders and lower cancellations. For the quarter, DTC fell 3% and wholesale grew 8%.
- VF saw growth at The North Face and Timberland, with 5% and 11% revenue increases, respectively. Vans, which has been a drag on the company’s earnings and is a key part of its transformation plan, saw revenue fall 9%. Dickies revenue dropped 10%.
Dive Insight:
VF launched its Project Reinvent plan in October 2023, with the intention of bolstering its brand building and boosting sales in North America. The plan included naming new leadership at Vans and selling Supreme to EssilorLuxottica.
In the Q3 earnings presentation, CEO Bracken Darrell said VF is on track against its Reinvent priorities. Darrell added that the company would share further plans during its upcoming investor day in March.
“Although there is work to do to consistently deliver double-digit operating margins and sustainable top-line growth, we are making great strides in transforming VF into a truly differentiated, multi-brand operator,” Darrell said.
VF’s plan to reduce Vans’ product offering in stores and boost its marketing initiatives will accelerate its growth in the long term, according to Edward Jones analysts led by Brian Yarbrough.
“We expect that new management, marketing and brand innovation will take time,” Yarbrough said in an analyst note. “Improved demand trends at Vans should help propel sales and earnings over the longer term.”
In Q3, VF saw low single digit growth in every region. The Americas and the region which includes Europe, the Middle East and Africa each saw a 1% revenue rise. The Asia Pacific region saw 5% growth.
The company’s net inventories were down $300 million, or about 14% from last year.
VF set quarterly revenue guidance for the first time since October 2023. The company now expects revenue to decrease between 4% and 6%.
