VF Corporation is making some big moves as it gears up for a major brand overhaul.
In its first quarter fiscal year 2025 earnings call, VF Corp. shared that it's on track to save an additional $50 million and had to sell its Supreme brand for a $1.5 billion.
This strategy aims to streamline its focus on core brands and boost overall leverage.
Despite facing some rough patches with drops in its Americas platform and key brands like Vans and The North Face, VF Corp. is hopeful for modest revenue growth in the coming quarter.
The company is laser-focused on cutting costs and ramping up profitability.
According to reports, VF Corp.'s CEO, Bracken Darrell, laid out the game plan, including some noteworthy changes to the Vans brand. "We're really rightsizing our distribution," Darrell said, emphasizing a pullback from discount stores in Europe and the U.S. This shift is part of a broader strategy to breathe new life into Vans.
Darrell acknowledged that Vans had lost some of its spark, partly due to an overemphasis on a few popular styles and an oversaturated market. To fix this, VF Corp. is innovating with new styles and key collaborations, like the AVE 2.0 and Knu Skool, while also managing its franchise strategy to refresh older styles.
"We're taking a step back with some styles and focusing on reinvigorating them with influencers and fresh releases," Darrell explained. With only 19% of its business in apparel, there's still a huge opportunity for growth, especially in the Vans brand. VF Corp. is gearing up for an exciting October investor event that will shed more light on its long-term strategy and cost-saving plans. Stay tuned for more updates as VF Corp. navigates its way through these changes and prepares for future growth.