VF, the owner of popular brands such as Vans, North Face, and Timberland, experienced a significant drop in revenue for its fiscal third quarter. The company reported a 16% decline in revenue, totaling $2.96 billion, which fell short of analysts’ expectations of $3.23 billion. This disappointing performance caused VF’s stock to drop by 14% to $14.63.
The decline in revenue was most pronounced in the Americas, where the company’s topline performance plunged by 24% to $1.56 billion. In the Europe, Middle East, and Africa region, revenue decreased by 7%. Vans, one of VF’s flagship brands, saw a substantial drop in sales by 28% to $668.2 million, followed by Timberland.
Additionally, VF reported a quarterly loss of $42.5 million, or 11 cents a share. This is in stark contrast to the profit of $507.9 million, or $1.31 a share, that was recorded during the same period last year.
Chief Executive Bracken Darrell acknowledged the company’s challenging situation, stating, “This quarter marked the beginning of the next phase of our transformation plan: resetting the marketplace for Vans, reviewing our brand portfolio, and continuing to build the organization of the future.”
Despite these setbacks, VF remains committed to its turnaround plan and growth strategy. It is hoped that by taking necessary steps and making strategic decisions, the company will be able to navigate through these challenging times and position itself for success in the future.