Global apparel and footwear company VF Corporation (VF Corp), owner of the footwear brand Vans, has generated a total revenue of $3.03bn in the second quarter (Q2) of fiscal year (FY) 2024.

This is a decrease of 2% from $3.08bn in the same period of FY23.

During the quarter ending 30 September 2023, revenue of The North Face brand increased by 19% to $1.12bn while Vans posted a revenue decline of 21%.

The company’s Wholesale and Direct-to-Consumer (DTC) revenues dropped 1% and 3%, respectively, in Q2 FY24.

Regionally, sales of VF Corp in the Americas decreased by 11%. However, its International business recorded a 10% sales growth driven by an 8% growth in Greater China and 14% in Europe, the Middle East and Africa over the quarter.

The company delivered a loss per share of $1.16 in Q2 FY24, compared to a loss per share of $0.31 in Q2 FY23.

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By GlobalData

Its gross margin also decreased by ten basis points to 51.3% in Q2 FY23 while its operating margin improved by 1,490 basis points to 12.0%.

VF Corp CFO Matt Puckett said: “Despite pockets of continued strong performance throughout the first half and solid profit margins in the second quarter, it’s not enough and we are not making sufficient progress at Vans or in the US.

“Our transformation plan, Reinvent, directly addresses these areas in particular and importantly, commits to lowering our cost structure by $300m. Through this effort and our ongoing evaluation of all aspects of our business, we remain laser-focused on cash generation and debt reduction, with the intent to return to growth, drive higher ROIC and reduce leverage.”

The company has updated its free cash flow projection for FY24 and now expects it to be around $600m.

It also expects Vans’ performance to not improve in the second half of FY24.