VF Corporation is again reporting a strong quarter for The North Face and a down quarter for Vans in the fiscal second quarter ended September 30.

Consolidated revenue was $3.03 billion in the fiscal second quarter, down 2 percent, or down 4 percent in constant-currency terms (cc), with the big four brands (TNF, Vans, Timberland, Dickies) down 3 percent (-5 percent cc) and the balance of the portfolio up 6 percent (+4 percent cc).

  • The North Face posted $1.13 billion in revenue for the period, up 19 percent (+17 percent cc) year-over-year.
  • Vans, on the other hand, saw revenue fall 21 percent (-23 percent cc) to $748.1 million in fiscal Q2.
  • Timberland revenues declined 7 percent in reported terms (-10 percent cc) to $488.6 million.
  • Dickies sales decreased 8 percent (-9 percent cc) to $171.4 million in the quarter.
  • The Other Brands business grew 6 percent (+4 percent cc) to $496.6 million.

The Americas region was down 11 percent in the quarter to $1.57 billion, but only down 3 percent when excluding Vans.

The International business was up 10 percent (+5 percent cc) to $1.66 billion.

Adjusted gross margin was 51.3 percent for the period, down 20 basis points due primarily to headwinds of 50 basis points of unfavorable rate impact, partially offset by tailwinds of 20 basis points from favorable mix and 10 basis points of foreign currency exchange rate benefits.

The company posted a $1.16 loss per share in Q2 versus a 31 cents loss per share in Q2 last year, impacted by the additional tax expense booked as a result of the Timberland tax case ruling. Adjusted earnings per share were 63 cents versus adjusted EPS of 73 cents in the year-ago period.

The company also announced a 7 percent decrease in the quarterly dividend to 9 cents a share and introduced a new transformation program initiative associated with Project Reinvent.

VF Corp. is also withdrawing its FY24 revenue and earnings outlook and updating its FY24 free cash flow guidance.

For more details about VF’s Q2 results and the company’s turnaround plan, including new promotions, leadership departures, cost cutting, debt reduction and more, go here:

EXEC: VF’s Turnaround Plan to Focus on Vans, the Americas, Debt and Cost Structure