VF Corporation, parent of The North Face, Vans, Timberland, Dickies, Jansport, Smartwool, and a range of other outdoor and street lifestyle brands, reported that fiscal 2024 third quarter revenues fell 16 percent, or down 17 percent in constant currency (CC), to $3.0 billion for the three-month period ended December 31, 2023. The year-over-year (YoY) decline was a clear acceleration of the decline of the business which was down just 2 percent (-4 percent CC) in the fiscal second quarter when new CEO Bracken Darrell sounded the alarm that all was not well in the business. He appears to be a bit more positive about the future in his latest comments herein.

The company said the fiscal Q3 business was negatively impacted by a shift in the timing of wholesale deliveries, which was most pronounced for The North Face and the EMEA region.

  • The North Face was down 10 percent (-11 percent CC) to $1.19 billion in Q3 and up 4 percent (+3 percent CC) to $2.86 million in the nine-month year-to-date period (YTD Period).
  • Vans was down 28 percent (-29 percent CC) to $668.2 million in the third quarter, inclusive of deliberate actions taken to right-size inventories in the Wholesale channel.
  • The Timberland business was down 21 percent (-22 percent CC) to $473.0 million in the third quarter.
  • Dickies posted a 16 percent decline (-17 percent CC) to $147.9 million in fiscal Q3.

Gross margin was 55.1 percent of sales in Q3, up 20 basis points YoY; Adjusted gross margin 55.3 percent, up 40 basis points YoY.

Loss per share was 11 cents in Q3, compared to earnings per share $1.31 in the corresponding quarter in the prior year. Adjusted earnings per share were 57 cents in Q3 versus adjusted earnings per share $1.12 in the prior-year corresponding quarter.

Adjusted earnings per share were significantly lower than the expected 77 cents for the period. Revenue was also a miss, coming up short of the expected $3.24 billion for the period. VF did not offer guidance for the third quarter when the company reported the fiscal second quarter. Darrell appeared to have little faith in the company’s ability at the time to forecast numbers that were achievable.

Image courtesy Vault by Vans x Mastermind World

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For more on the Q3 results and brand vision for Vans and The North Face, as well as CEO Bracken Darrell’s review of the Reinvent transformation plan, see SGB Media’s coverage below:

EXEC: VF Execs Outline Progress Against Transformation Plan, Brand and Region Review

EXEC: VF Sees The North Face Fiscal Q3 Results “Worse Than Expectations”

EXEC: Vans Falls 17 Percent in Q3; Inventory Down as Brand Helps Create OTB