Vans is clawing its way out of a rough patch, and VF Corp. wants everyone to know it’s going to take a bit of time. CEO Bracken Darrell shared some updates recently, talking about both the tough times and a few hopeful signs in the latest earnings report.
Vans’ revenue took an 8% hit in constant currency, bringing it to $607.6 million for the quarter ending December 28. While it’s still a drop, it’s actually better than last quarter’s 11% decline.
Asia-Pacific felt the biggest sting, with revenue dropping 31%. Still, Darrell is staying upbeat, highlighting some progress in their product and distribution game.
One standout? The Knu Skool sneaker. VF execs have been giving it shout-outs as a win, showing that when Vans tries out fresh ideas, there’s room to grow.
They also had a solid holiday season with their OTW collaborations, including some cool partnerships with Satoshi Nakamoto and HommeGirls. In the U.S., full-price channels finally performed well, which is a nice change from early 2022.
“We’re making strides and feeling more confident about the brand’s potential,” Darrell said, but he warned that big changes don’t happen overnight.
Going forward, a big part of the strategy is under Global Brand President Sun Choe, who came on board in July.
She’s got a solid background in product and retail from places like Lululemon and Madewell. Her influence has already shown during the back-to-school and holiday seasons, but VF Corp. is looking for even bigger changes by 2026.
Right now, the company is working on tidying up its distribution strategy. They’ve closed about 14% of company-owned stores and 9% of U.S. wholesale spots. Off-price sales - which used to be nearly half of Vans’ revenue - are now down to about a third, and they’re planning to refine that mix even more.
Darrell pointed out that while Vans has roots in skateboarding, they’re aiming to connect with a wider crowd. The brand is trying out different marketing tactics and keeping an eye on what consumers are responding to.
“We’re experimenting with how to create demand and where we spend our money, especially during the holidays, and we’re learning,” Darrell explained.
For now, investors will have to hang tight for more specifics. VF Corp. plans to share a bigger breakdown later this year during an investor day when Choe will lay out her vision for Vans. Until then, the vibe is clear: progress is being made, but there’s still a ways to go.