Vans, Dickies, Timberland underperform, driving VF revenue down

(Source: Vans/Facebook)

Apparel company VF Corporation witnessed lower revenue last fiscal year amid weaker performance across most of its brands.

The company’s revenue fell 10 per cent to $10.45 billion with its Vans business down 24 per cent to $2.79 billion and Timberland sliding 13 per cent to $1.56 billion.

Dickies’ revenue declined 15 per cent to $618.4 million.

Meanwhile, The North Face’s revenue grew 2 per cent to $3.67 billion and other brands’ revenue rose 1 per cent to $1.82 billion.

In the fourth quarter, the company’s revenue decreased 13 per cent to $2.37 billion. VF Corporation noted an ongoing US wholesale weakness, which dragged down The North Face’s revenue by 5 per cent to $814.3 million.

Moreover, Vans’ revenue tumbled 26 per cent to $631.2 million, which includes the impact of efforts to further right-size inventories in the wholesale channel.

“As we move into fiscal year 2025, we will continue to execute our broader turnaround plans, including driving continued momentum on our key priorities, namely fixing the Americas, turning around Vans, reducing costs, and paying down debt, while progressing on the actions resulting from our strategic portfolio review,” said Bracken Darrell, VF Corporation president and CEO.

“We have been rebuilding the leadership team, including the announcement of the CFO appointment, and I feel energized that we are positioning VF to return to sustainable and profitable growth.”

For the current fiscal year, the company expects free cash flow and the sale of non-core assets to generate about $600 million.

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