Skate shoe brand Vans is still dealing with some tough numbers, but the company believes things are finally starting to head in the right direction.
VF Corporation, the company that owns Vans, recently shared its latest financial results, and while the brand's sales were down during the quarter, executives sounded much more optimistic about what comes next.
According to the reports, Vans revenue fell 8 percent compared to the same time last year, or 9 percent when currency changes are factored in. Even with that decline, company leaders say they are seeing progress where it matters first.
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One of the biggest reasons for optimism is Vans' direct to consumer business in North America. More people are buying straight from Vans through its website and retail stores, even though sales to outside retailers continue to struggle.
Vans President Sun Choe said this is exactly how they expected things to play out. Their goal has been to rebuild interest through their own stores and online shop before wholesale business catches up.
That wholesale side of the business has remained the biggest challenge. Stores that carry Vans have been ordering less product, which has had a noticeable effect on the company's overall sales. Even though direct sales improved, they were not enough to make up for those lower wholesale orders.
Still, there were several signs that caught the company's attention.
In the United States, which makes up about half of Vans' business, online sales have continued to improve.
Executives also shared that nearly 60 percent of comparable Vans stores are now either matching or beating last year's sales. That is a better position than the company was in not long ago and suggests more customers are returning to Vans stores.
Classic shoes are also helping the brand regain attention.
The Authentic continued another strong quarter with double digit growth, while the Slip On and Old Skool also performed well. Vans credited some of that success to fresh colorways, distressed finishes, and collaborations, including one with Travis Barker.
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The limited Souvenir Asphalt collection was another bright spot after selling out in about thirty minutes.
This is an encouraging sign for skaters because the brand has spent the last year giving more attention to some of its most recognizable silhouettes instead of relying only on completely new models.
Those classic shoes have been part of skateboarding for decades, and it appears they are finding their audience once again.
Vans also believes its name is gaining more attention outside traditional skate circles.
Company leadership pointed to growing interest surrounding the brand and mentioned recognition from fashion publications along with attention from luxury labels.
While those partnerships may not matter to every skater, they do help keep Vans visible to a wider audience.
Events are also playing a part.
The return of the Vans Warped Tour continues to give the brand another way to connect with music fans and skateboarders.
Company executives expect attendance across this year's tour stops to reach close to 600,000 people, giving Vans another opportunity to stay in front of a large audience throughout the year.
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VF expects the wholesale side of Vans to improve during the second half of its fiscal year.
Retail partners are expected to begin bringing in more of the company's newer footwear and apparel collections ahead of the holiday shopping season and into spring.
If that happens, the company believes the sales decline will become much smaller later this year.
While Vans is still expected to finish the fiscal year below last year's sales, executives believe the second half will look much better than the first.
Their current outlook calls for a decline of around 9 percent during the first half before improving to around 2 percent or less during the second half.
The numbers show that Vans still has work to do.
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An 8 percent sales decline is not where the company wants to be, and wholesale remains its biggest challenge.
At the same time, growing direct sales, stronger online performance, healthier retail stores, and continued demand for classics like the Authentic, Slip On, and Old Skool give the company reasons to believe its recovery is beginning.
Many skateboarders have watched Vans go through changes over the last several years, from shifts in leadership to changes across its skate team and product lineup.
The latest earnings report does not suggest everything has been fixed overnight, but it does show that the company believes its plan is beginning to produce results.
The next few quarters will likely show if that confidence turns into stronger sales across the skate brand.