VF Corporation, the entity behind brands such as Vans and The North Face, has disclosed a 16% decrease in revenue for the third quarter (Q3) of fiscal 2024 (FY24) amounting to $2.9bn, a drop from $3.5bn in the same quarter of FY23.
The company’s financial performance was affected by a change in the timing of wholesale deliveries, particularly impacting The North Face and the Europe, Middle East and Africa region (EMEA).
During the quarter, The North Face experienced a 10% decline in revenue, falling to $1.1bn in Q3 FY24 from $1.3bn in the same quarter of the previous year.
Vans also saw a significant decrease, with revenue dropping 28% to $668.2m in Q3 FY24 from $926.9m in Q3 FY23.
The Asia Pacific (APAC) region reported a 2% increase in revenue, bolstered by a 5% growth in Greater China.
However, revenues in the Americas and Europe, and in the EMEA region, fell by 24% and 7% respectively in Q3 FY24.
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The VF Corporation posted a loss per share of $0.11 in Q3 FY24, in contrast to the earnings per share (EPS) of $1.31 in the same quarter of the previous fiscal year.
Its adjusted EPS also declined to $0.57 from $1.12 in Q3 FY23.
The company managed to reduce its net debt by $640m from the previous year.
Over the first nine months of the fiscal year 2024, VF Corporation’s total revenue reached $8.08bn, a 9% decrease from the $8.87bn reported in the corresponding period of FY23.
Despite the downturn, VF Corporation has maintained its free cash flow forecast for FY24 at $600m.
VF Corporation president and CEO Bracken Darrell stated: “Our third quarter top-line performance was disappointing. However, we are confident the actions we are implementing as part of Reinvent will enable VF to stabilise and then grow revenue and improve operational performance across brands and regions.
“This quarter marked the beginning of the next phase of our transformation plan: resetting the marketplace for Vans, reviewing our brand portfolio and continuing to build the organisation of the future. As we approach the end of this fiscal year, my confidence in VF’s future is rising.”