FashionVans Parent VF Corp Swings to Profit, Beats Sales...

Vans Parent VF Corp Swings to Profit, Beats Sales Estimates

-

spot_img



Vans parent VF Corp opens new tab turned a profit after two consecutive quarterly losses and beat second-quarter sales estimates on Monday, benefiting from sequential improvement in its direct-to-consumer business and leaner inventory, sending its shares up about 16 percent after the bell.

CEO Bracken Darrell’s turnaround strategy including appointment of executives like Sun Choe as global brand president for Vans, sale of its streetwear brand Supreme has started to show stronger growth in China followed by Americas and EMEA.

VF Corp’s quarterly revenue rose 9 percent in China, on a constant currency basis, compared with a 4% increase in the year ago period.

The company’s revenue fell 6 percent to $2.76 billion from a year ago, beating analysts’ estimates of $2.71 billion, according to data compiled by LSEG.

The company’s margins continued to improve due to inventory clearance initiatives — such as increased promotions and discounts — implemented in the previous quarters, even in the face of rising business reinvestment.

VF Corp’s quarterly gross margin expanded 120 basis points to 52.2 percent.

On an adjusted basis, VF Corp posted a profit of 60 cents per share, compared with analysts’ estimates of 37 cents per share.

Peers Deckers Outdoor (DECK.N), opens new tabGap and Abercrombie & Fitch (ANF.N), opens new tab also saw a boost in demand for their trendier apparel and footwear.

Analysts from Guggenheim Securities noted earlier this month that VF Corp could see sequential improvement in wholesale throughout FY25, as retailers are expected to increase orders for both The North Face and Vans during the Spring season.

Learn more:

What Is VF Corp.’s Plan for Vans and Its Other Struggling Brands?

Activist investors are demanding big changes at the fashion conglomerate, which also owns The North Face, Supreme, Timberland and other brands. The company will have a chance to lay out its own vision when it releases earnings this week.



Source link

Latest news

Donald Trump victory bets and strong US economy power dollar gains

Unlock the US Election Countdown newsletter for freeThe stories that matter on money and politics in the race...

Israeli airstrikes on Lebanon and Gaza kill dozens as rockets are fired into Israel | Lebanon

Israeli airstrikes on Friday killed at least 52 people and wounded scores more, the Lebanese health ministry said,...
spot_img

Vote Like Her Life Is on the Line—Because It Is

My daughter is the light of my life, but her birth could have killed me. I didn’t have...

Keir Starmer vows tough reforms and seeks to calm markets

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly...

Must read

spot_img

You might also likeRELATED
Recommended to you