VF Corp., the parent company of skateboarding brands such as Vans and Supreme, faced a setback as it reported disappointing third-quarter results on Tuesday.
According to reports, the company's CFO, Matt Puckett also announced his departure, contributing to a 7% drop in VF Corp.'s shares in extended trading.
We reported last week that the corporate giant will have to shut down their Santa Fe Springs Distribution Center, leading to 255 layoffs.
The company has been grappling with challenges in the apparel and footwear industry, with weak wholesale volumes and reduced demand for its iconic Vans sneakers.
The company withdrew its annual forecasts in October, unveiling a cost reduction plan in response to the evolving market conditions.
CEO Bracken Darrell, who assumed the role in June 2023, emphasized the necessity of an objective assessment of all brands within the company.
VF Corp.'s third-quarter revenue experienced a significant 16% drop due to subdued demand during the critical holiday shopping season.
Vans faced a decline in revenue for several consecutive quarters.
The revenue from the Vans brand plummeted by 28%, while the Americas region saw an overall 24% decrease.
To counteract this trend, VF Corp. intensified promotional activities for Vans sneakers, which have lost traction among customers.