0.20%VF Corporation has beaten expectations for Q3 FY2025 thanks to stronger sales from their core brand, The North Face, which was up 5% to $1.3 billion.
When I use to work with one of The North Face’s PR agency they would send out all this free gear (literally monthly) for me to promote their new products. Really it was just a form of payment for promotion known as gifting which were generally samples, but laying it all out sometimes made me feel very privileged for a brand I had been proudly wearing since I was about 14. Thousands of pounds worth of the latest TNF gear each month, with the office sometimes feeling more like an agency showroom. After VF Corporation recently reported stronger sales for The North Face it made me think back to the stacked rail days of our offices, but nothing compared to the quarterly sales of $1.3 billion for The North Face which they have just reported for Q3 FY2025. That’s a hell of a lot of Nuptse’s, Himalayan parkas & Mountain jackets! Despite beating analyst expectations for the quarter, stock in VF Corp were down by around 4% yesterday in early morning trading.
Net earnings for the quarter totalled $167.1 million, $0.43 per share, which massively beat losses of $42.5 million, $0.11 per share, compared to the same period last year. Adjusted earnings rose to $0.62 compared to the $0.45 from the same period last year. Revenues for the third quarter up to 28th December 2024, were up 2% to $2.8 billion with sales in The North Face up 5$% to $1.3 billion. Timberland was also up at 11% to $527 million. Other VF brands Vans & Dickies both struggled for the quarter, Vans sales were down 9% for the quarter to $607.6 million whilst Dickies saw a 10% decline in sales to $133.6 billion.
After off-loading Supreme to EssilorLuxottica back in July 2024, VF’s net debt was down to $4.7 billion which was a reduction of $1.9 billion compared to same period last year. VF Corporation also said it’s still on track to deliver $300 million in initial savings from its Reinvent plan & expects revenue for the current quarter to be down 4%-6% comparable to the same period last year, with an adjusted operating loss of around $30 million. Also don’t forget to subscribe to Sneaker Jobs & follow @sneaker_jobs to keep up to date with all the latest industry news.
We made strong progress in Q3’25, improving profitability and further strengthening the balance sheet. The pace of VF’s transformation is on track as we deliver against our Reinvent priorities. Although there is work to do to consistently deliver double-digit operating margins and sustainable top-line growth, we are making great strides in transforming VF into a truly differentiated, multi-brand operator.
Bracken Darrell – CEO VF Corporation
