US apparel conglomerate VF Corp, the owner of shoe brands Vans, Dickies and Timberland reported a decline in sales for FY24 despite its turnaround efforts with an industry expert noting it will “take time” to strengthen brand perceptions.



VF Corp’s FY24 revenue of $10.5bn fell 10% (or 11% in constant currency) in the 12 months ending 30 March.

Vans was “unsurprisingly” down 24% to $2.79bn plagued by its “lack of desirability” amongst younger shoppers due to its “confusing” product offering and brand image, according to GlobalData apparel analyst Louise Deglise-Favre who added this is down to its failure to “modernise its perception as a brand from the 2010s.”

Deglise-Favre was keen to note that despite this VF Corp’s new marketing strategy, which focuses on fewer but more impactful campaigns for its Vans brand, seems to have started to “bear fruit in Europe,” where direct-to-consumer (DTC) sales were positive in Q4.

Timberland was down 13% to $1.56bn, Dickies revenue slipped 15% to $618.4m whilst The North Face grew 2% to $3.67bn. However Deglise-Favre explained The North Face’s sales declined 5.3% in Q4, which is in contrast to the “enviable growth” it has achieved in the last couple of years as demand is slowing for outdoor sportswear and its high prices may have deterred some financially cautious consumers.

VF Corp linked The North Face’s revenue slip to an ongoing US wholesale weakness.

Supreme, which is said to be for sale, was a bright spot for VF along with other businesses jumping 1% to $1.82bn.

Bracken Darrell’s reinvention of VF Corp continues as he explains how 2025 will see the company execute its “broader turnaround plan” which includes “fixing the Americas and turning around Vans,” while it cuts costs and pays down debt.

The Americas remained the company’s “worst performing region” said Deglise-Favre as revenue dropped 18% to $5.5bn – the second consecutive year of decline in the region according to the apparel analyst who said it was due in part to its heavy reliance on wholesale partners which “cut back on their orders amid slowing demand.”

Deglise-Favre described APAC as VF Corp’s “beacon of light, albeit tame,” which rose 7% for the year to $1.6bn driven by a growing appetite for the sportswear category.

In the full year gross margin of 52% dropped 50 basis points; while the adjusted gross margin of 52.1%, was down 50 basis points. The operating margin was -0.3%, down 310 basis points; and the adjusted operating margin of 5.6%, was down 420 basis points.

VF Corp Q4 key findings:

• Revenue down 13% on the prior period to $2.4bn

• Operating income was reported at $355.7m compared to 160.8m in 2023

• Net income was $418.4m

• Americas was down 22% while EMEA and APAC were both down 3%.

Earlier this year, VF Corp said it was undertaking a strategic review of its brands amid slumping sales.

In the company’s FY25 outlook it said free cash flow plus the benefit of non-core asset sales is expected to generate approximately $600m.

The group did not provide an exact guidance for the year ahead, however Deglise-Favre said: “It remains hopeful that its Reinvent programme will improve its operating performance and help strengthen brand perceptions through cost-cutting and tighter inventory control.”