VF Corp revenue hits $2.7 billion as Altra surges and Vans tumbles
VF Corp. revenue reached $2.7 billion in the second quarter.
The short version
- The North Face and Timberland grew four percent.
- Vans tumbled nearly ten percent with a slow turnaround.
- The running brand Altra jumped forty percent to help.
Why it matters to you. For your business, it is a reminder of how hard it is to revive a massive retail brand once it loses momentum.
VF Corp., the clothing and shoe giant that owns The North Face, reported second-quarter revenue of $2.7 billion, up one percent from a year ago according to Yahoo Finance. The North Face grew four percent to $1.2 billion, and Timberland grew four percent to nearly $526 million.
But Vans, the massive sneaker and skateboard brand, tumbled nearly ten percent to about $548 million as a painful turnaround drags on. Tom Nikic, an analyst at Needham, a major investment banking and asset management firm, called it an excruciatingly long Vans turnaround in a note to clients.
Meanwhile, the company's running shoe brand Altra surged forty percent, with analysts predicting its fast growth will fully offset the declines at Vans. On a call with analysts, VF Corp. CEO Bracken Darrell said retailers were working through old inventory and that new styles are on the way.
The company also slashed its net debt by over $1 billion, marking a twenty percent drop from last year. As Darrell put it, a bigger pile of new products is coming.
