VF Corporation Is Reviewing Its Brand Portfolio After Missing Q3 Goals
The North Face and Vans owner reported a 16% decrease in revenue.
VF Corporation has fallen short of its Q3 goals, the company revealed on Tuesday. VF’s revenue decreased by 16%, as the company expected a greater volume of sales during the holiday season. The quarter’s revenue rounded out to $3 billion USD with net losses at $42.5 million USD.
North Face was among the companies that experienced a downturn in sales with a 10% percent drop, while Vans has been suffering for the past few quarters despite increased promotion. The shoe brand suffered a 28% decrease in sales and another name in the space, Timberland, slipped by 21%.
Amid its struggles, VF is conducting a “strategic portfolio review” of its brands. The corporation was already angling to sell off its pack brands, including JanSport and Kipling.
“These are disappointing numbers across the board, and we’re acting with urgency to improve performance so that we do not report another quarter like this,” CEO Bracken Darrell told investors on an earnings call.
“VF has been working to right-size its business, including through cost cuts that included layoffs aimed at eliminating $300 million in fixed cost savings. Reducing debt and strengthening the balance sheet remains a priority and we benefited from the reduction of inventories and the recent reduction of dividend.”
