VF Corp, the Denver-based company, has reported a 4% decrease in revenues for the second quarter of the year. This decline can be attributed to the poor performance of three major brands within the company: Vans, Dickies, and Timberland. In the three-month period ending on October 1, total revenues fell to $3.1 billion, compared to $3.2 billion in the same quarter of the previous year.

Vans, a popular brand under VF Corp, experienced a sharp decline in revenue, dropping 13% to $952 million. Similarly, Dickies saw a significant decrease of 19% in revenue, totaling $186 million. Timberland also suffered a 4% dip in revenue, amounting to $524 million. However, The North Face managed to offset some of these declines with an 8% increase in revenue, reaching $951 million. VF Corp’s other brands category saw a 4% lift in revenue.

The decline in revenue was not limited to any specific region, as VF Corp witnessed single-digit drops across all markets. Sales in the Americas declined by 3%, while EMEA (Europe, the Middle East, and Africa) reported a 4% decrease, and APAC (Asia-Pacific) sales dropped by 6%.

Both direct-to-consumer and wholesale revenues experienced a 4% decrease, illustrating the challenging market conditions faced by VF Corp. Earnings loss per share stood at $0.31 on a reported basis, indicating a significant 126% decline compared to the previous year.

Despite these challenges, VF Corp remains optimistic about its brand portfolio and its ability to navigate the changing global marketplace. Steve Rendle, chairman, president, and CEO of VF, emphasized the resilience of the company’s iconic brands in the outdoor, active, streetwear, and workwear spaces.

Looking ahead, VF Corp reaffirmed its full-year revenue guidance, expecting a 5% to 6% increase in constant dollars. However, the company has revised its earnings outlook due to negative impacts from foreign currency fluctuations, increased inventory levels, and heightened promotional activity in the marketplace. The adjusted earnings per share (EPS) projection now stands in the range of $2.40 to $2.50, compared to $3.18 in the previous year.

Useful Links:
Official VF Corp Website
Retail Dive – VF Corp Reports Decrease in Revenues