The president and CEO of VF Corp, Bracken Darrell, has moved to quell concerns after the Vans and The North Face owner reported a 9% slide in revenue to $1.9bn, saying the rate of decline is moderating.

“Vans remains the thorn in VF Corp’s side, with sales declining 21.1% in Q1, as demand for the brand continues to be at a standstill due to changing trainer trends towards more sporty, comfortable styles and Vans’ unclear positioning among demographics, with it struggling to retain relevance amongst Millennials while also failing to inspire Gen Z.” Credit: Shutterstock.

Net loss significantly widened at VF Corp to $258.9m versus $57.4m and operating losses increased to $239m from $8.99m for the three months ending June (Q1).

The dent is believed to have come from impairment of goodwill and intangible assets charges.

Still, an upbeat Darrell said after his first year at VF, he feels “more energised than ever.”

“While the business is still down, the rate of decline moderated quarter-over-quarter versus Q4 and across almost all our brands. We advanced further on the Reinvent transformation plan. We are on track to deliver our targeted cost savings and we have addressed one of our top financial priorities to strengthen the balance sheet with the announced sale of Supreme. Together with the first-class leadership team I have built, we are confident we will continue to make progress to return to growth and drive strong, sustainable value creation at VF.”

Louise Deglise-Favre, apparel analyst at GlobalData, noted the decline was “less severe” than the 13.3% drop in Q4 FY2023/24, but adds the group clearly has not yet solved the desirability issues faced by some of its core brands.

“The group has stated that it is making progress on its Reinvent strategic plan and is on track to deliver its targeted cost savings and improve its balance sheet, helped by the sale of Supreme which should be complete by the end of 2024. This will bring some much-needed liquidity to VF Corp, which should be used to boost demand for its core brands through marketing and rejuvenated designs.