Vans parent VF Corp beats quarterly estimates as turnaround plan pays off

VF

29/01/2025 13:05

Jan 29 (Reuters) - Apparel and footwear maker VF Corp
 VFC.N  beat third-quarter revenue and profit estimates on
Wednesday, helped by efforts to revive demand and refresh the
product lineup of its Vans, North Face and Timberland brands.
        Shares of the company were up nearly 6% in premarket
trading.
    Favorable weather in the U.S. has driven demand for outdoor
and active wear, especially during the holiday season.
    More full-price sales and cost-cutting under its turnaround
plan also helped the Timberland footwear maker grow its
third-quarter adjusted operating margins by 360 basis points to
11.4%.
    VF Corp has now beaten revenue and profit estimates for
three successive quarters, recovering from demand headwinds and
losses that had affected the company up to early 2024.
    The company's turnaround plan involves focusing on its Vans
brand, cutting $300 million in costs by the end of fiscal 2025,
and selling non-core businesses such as its streetwear brand
Supreme.
    "Although there is work to do to consistently deliver
double-digit operating margins and sustainable top-line growth,
we are making great strides in transforming VF into a truly
differentiated, multi-brand operator," CEO Bracken Darrell said 
in a statement.  
    For the quarter ended Dec. 28, the company's revenue rose 2%
to $2.83 billion from a year ago, beating analysts' estimates of
$2.75 billion, according to data compiled by LSEG.
    On an adjusted basis, VF Corp posted profit of 62 cents per
share, compared with estimates of 34 cents.
    The Denver, Colorado-based apparel retailer also expects
fourth-quarter revenue to fall between 4% and 6%, almost in line
with expectations for a 4.96% decline.

 (Reporting by Neil J Kanatt in Bengaluru; Editing by Sahal
Muhammed)
 ((Neil.JKanatt@thomsonreuters.com))