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North Face and Vans owner VF Corp has revealed that its revenues dropped 6% to $2.8bn (£2.15bn) for the three months ended 28 September 2024.
However, this decrease in revenues is an improvement on the 10% decrease in revenues it posted in Q1 of this fiscal year.
The North Face revenues were down 3%, down 4% in constant dollars, as the company expected.
However, the company stated that this compares against a strong Q2 last year where its revenues rose 19%, up 17% in constant dollars.
Furthermore, Vans revenues were down 11% compared with last year, however this is an improvement on the 21% decrease seen in Q1.
Despite this, the company’s gross margin was 52.2%, up 120 basis points in comparison with last year.
As a result the company expects Q3 revenues in the range of $2.7bn (£2.08bn) to $2.75bn (£2.12bn), down between 1% and 3% year-over-year in reported dollars.
It also expects an adjusted operating income in the range of $170m (£130.8m) to $200m (£153.9m).
Bracken Darrell, president and CEO, said: “Our results in the quarter met our expectations and reflect a sequential and broad-based improvement in year-on-year trends. At the same time, we made further progress on our four Reinvent priorities and we are on track to reach our previously announced $300m savings target by the end of FY25.
“Following the completion of the Supreme divestiture on October 1, 2024, we delivered on our commitment to pay down VF’s $1bn term loan due December 2024. Our Americas regional platform is fully operational and showing promising signs, while the performance at Vans is improving. In summary, we advanced our turnaround plan towards a return to growth and strong, sustainable value creation at VF.”
