VF Corporation, a leading US-based firm in branded lifestyle apparel, footwear, and accessories, has reported a 16 per cent decline in revenue for the third quarter of fiscal 2024 (Q3 FY24), bringing in $3 billion. This decrease, which translates to a 17 per cent decline in constant dollars, was largely attributed to a shift in the timing of wholesale deliveries, especially impacting the North Face brand and the Europe, Middle East, and Africa (EMEA) region.

The company experienced a loss per share of $0.11, a significant downturn from Q3 FY23 earnings per share of $1.31. However, when adjusted for specific items, earnings per share stood at $0.57, compared to Q3 FY23's adjusted earnings per share of $1.12, VF Corporation said in a media release.

Specific brand performance varied, with the North Face witnessing a 10 per cent decline (11 per cent in constant dollars), although its revenue was up 4 per cent (3 per cent in constant dollars) over the first nine months of FY24. Vans experienced a more dramatic downturn, with revenue down 28 per cent (29 per cent in constant dollars), in part due to deliberate inventory adjustments in the wholesale channel.

Regionally, the Asia Pacific (APAC) region showed a contrasting trend, reporting a 26 per cent increase (28 per cent in constant dollars), including a 31 per cent rise (32 per cent in constant dollars) in Greater China. Conversely, the Americas region saw a 24 per cent decrease (25 per cent in constant dollars), and the international business as a whole was down by 5 per cent (8 per cent in constant dollars). Within the APAC region, the overall increase was 2 per cent (3 per cent in constant dollars), including Greater China's 5 per cent rise (7 per cent in constant dollars). EMEA region revenue decreased by 7 per cent (12 per cent in constant dollars).

In a positive note, VF Corporation's inventories decreased significantly, down $333 million during Q3 FY24, which is a 17 per cent reduction compared to the previous year.

Bracken Darrell, President and CEO, said: "Our third quarter top-line performance was disappointing. However, we are confident the actions we are implementing as part of reinvent will enable VF to stabilise and then grow revenue and improve operational performance across brands and regions. We have already begun to see the impact of our efforts to right-size the company’s cost structure and improve its inventory position, resulting in stronger than expected cash flow and expanded gross margin in the quarter.

“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 organisation of the future.”

Fibre2Fashion News Desk (DP)

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