World Footwear


Vans and Dickies drag down VF's revenue

Feb 9, 2023 United States
Vans and Dickies drag down VF's revenue
The US-based company has reported a 3% decline in revenue in the third quarter of the current fiscal 2023, year-over-year, with Vans and Dickies performing poorly in the period
In the third quarter of the current fiscal year, VF Corp's revenue totalled 3.5 billion US dollars, down by 3% (up by 3% in constant dollars), on a comparable basis to the same period of the last fiscal year.

In this period, the outdoor brand The North Face recorded a revenue increase of 7% (up by 13% in constant dollars), reaching 1.32 billion US dollars, as compared to the third quarter of fiscal 2022. However, the other top brand of the company reported weaker performances in the three months to the 31st of December 2022.

Vans' revenue was down by 13% (down by 9% in constant dollars), amounting to 926.9 million US dollars, Dickies' revenue declined by 16% (down by 13% in constant dollars) to 177.0 million US dollars, and revenue at Timberland remained flat (up by 6% in constant dollars), adding 595.5 million US dollars to the company’s total revenue.  

VF Corp posted a decline of 1% in earnings per share to 1.31 US dollars in the third quarter of fiscal 2023, as well as a decrease of 17% in adjusted earnings per share to 1.12 US dollars, year-over-year.

Fiscal 2023 Outlook

The company reiterated its previously reported outlook of revenue growth of approximately 3% in constant dollars for fiscal 2023. But Vans revenue is now expected to decline by high single digits in constant dollars (as compared to the previous guidance of mid-single digits) and The North Face revenue should increase by up to at least 14% in constant dollars (as compared to the previous guidance of up at least 12%). Adjusted earnings per share are expected at 2.05 US dollars to 2.15 US dollars, within the previous outlook of 2.00 US dollars to 2 US dollars.

"We are pleased to reaffirm the recently communicated full year 2023 EPS outlook with revenue growth at approximately 3%, after navigating an increasingly challenging fiscal Q3", commented Benno Dorer, Interim President and CEO of VF Corp, who also outlined a strategy to make the company return to profitable growth.

"We are committed to improving execution through a sharpened focus on the biggest consumer opportunities and enhanced operational performance. Consistent with this objective, we are shifting resource priorities across the Company, including by reducing the dividend, exploring the sale of non-core assets, cutting costs and eliminating non-strategic spending, while enhancing the focus on the consumer through targeted investments. We are confident these actions will enable a return to profitable and sustainable growth and, with that, strong shareholder value creation", he explained.

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