VF Corp. Beats Expectations in Q3 with Wholesale Growth

The North Face and Timberland both reported top-line growth in every region, while Vans and Dickies showed signs of improvement in a still-challenging environment.
Published: January 29, 2025

Updated 1/29/2025 with comments from Jonathan Komp, a stock analyst with Robert W. Baird & Co.

VF Corp. beat its estimates in the third quarter, with revenue growth at The North Face and Timberland, while Vans and Dickies showed more signs of improvement.

The results were driven by better-than-expected DTC revenue, which decreased 3% year-over-year. Wholesale sales grew by 8%, with increased wholesale re-orders and fewer cancellations in the quarter ended Dec. 31. Digital sales decreased by 3% in the quarter. VF’s DTC store count was down to 1,160 in December compared to 1,255 in 2023.

“Virtually every brand was stronger this quarter than last quarter,” said President and CEO Bracken Darrell on VF’s Wednesday morning earnings call.

  • The North Face revenue increased by 5% year-over-year to $1.25 billion.
  • Revenue at Vans decreased by 9% (or 8% in constant currency) year-over-year to $607.6 million.
  • Timberland revenue increased by 11% (or 12% in constant currency) in the quarter to $527 million.
  • Revenue at Dickies decreased by 10% year-over-year to $133.6 million.

Get a full picture of results at Vans and Dickies here.

Overall revenue at VF Corp. increased by 2.1% to $2.8 billion compared to the same quarter last year. Revenue declined from $7.6 billion to $7.3 billion over the first three quarters of the fiscal year.

Profitability also improved. VF’s net income in the quarter was $167 million, up from a loss of $42 million in the same quarter last year. For the nine months ended Dec. 31, VF reported a net loss of $38 million, a massive improvement from the $550 million loss the year before.

Net inventories declined by $300 million in the quarter. Net debt decreased by $1.9 billion in the quarter, with $1 billion coming from the proceeds of the sale of Supreme.

Third-quarter revenue in VF’s outdoor segment, which includes Timberland, The North Face, Eastpak, and Jansport, increased by 6% (or 7% in constant currency) year-over-year to $1.8 billion. Profit also increased by 2% to $400 million in the latest quarter.

“We’ve been encouraged by visible signs of structural changes across the organization that can lead to more consistent execution, stronger profitability, and ultimately the return to growth,” said Jonathan Komp, a stock analyst with Robert W. Baird & Co., in an email to SESO.

“It looks like VF has the right changes in motion to drive improved product design and innovation, more relevant brand positioning, and ultimately deeper connections to consumers that should drive a return to growth over time,” Komp continued. “The progress looks uneven with Vans still facing the greatest challenges and also not helped by broader consumer trends toward retro/terrace footwear styles, but we think VFC can demonstrate better growth across the portfolio over the next several quarters.”

The North Face

The holidays went well for The North Face, with growth across all channels and regions in the quarter.

  • Americas grew by 3%.
  • EMEA increased by 2%.
  • APAC revenue increased by 16%.

The North Face’s improved merchandising and operational execution led to fewer promotions.

Darrell celebrated the brand’s collaboration with Skims, saying it “set a new bar for global collaborations, execution, and impact, and was one of the fastest-selling collections in the history of The North Face.”

The brand’s AltaMesa 500 won Runner’s World Gear of the Year.

Revenue was flat at The North Face for the nine months ended Dec. 31, at $2.8 billion.

“The North Face core, its underlying brand history is oversized relative to the size of this business, in my opinion, and I love that position,” Darrell said. “It means growth is ahead.”

Timberland

Revenue grew in every region at Timberland as well, with strong performance through the holidays.

  • Revenue increased by 13% in the Americas.
  • EMEA revenue increased by 8%.
  • APAC revenue increased by 14%.

Darrell attributed Timberland’s success to thoughtful marketing of the brand’s “iconic” yellow boot celebrating its 50th anniversary that was particularly successful with influencer marketing. Its waterproof Redwood Falls and Britton Road boots for men and the women’s Stone Street franchise and Winnick jacket were all product highlights in the quarter. Its high-fashion collaborations with Louis Vuitton and Bottega Veneta have also helped the brand’s momentum, he said.

“The whole game plan there is, obviously, get as much you can out of this yellow boot franchise, but also expand and roll through with other franchises,” he said.

For the nine months ended Dec. 31, Timberland revenue increased by 1% (or 2% in constant currency) to $1.23 billion.

Reinvent Strategy Still at Play

Darrell said that the company’s turnaround strategy, dubbed Reinvent, is working. The plan, aimed at reducing costs, strengthening the balance sheet, and improving results in the U.S. and at the Vans brand, has involved global restructuring and multiple rounds of layoffs.

There are approximately 5,000 fewer employees at VF since the end of fiscal year 2023.

Employee headcount was approximately 28,000 as of Dec. 31, said Colin Wheeler, vice president of corporate affairs and communications, in an email to SESO. VF had approximately 30,000 employees at the end of fiscal 2024 and 33,000 employees at the end of fiscal year 2023, according to its annual reports.

VF hired several new leaders and global brand presidents, such as former Donna Karan exec Caroline Brown at The North Face and Timberland’s Nina Flood, who was promoted internally. CFO Paul Vogel joined in May 2024.

Darrell warned that the strategy is still being implemented, and its full effects won’t be felt for some time.

“We’re not really trying to give you a strong growth forecast into next year. At this point, it’s too early for that,” he said. “We’re giving you Q4 and what we are saying is, keep an eye on the profitability, we’re going to absolutely improve while we’re rebuilding a lot of things in the company to drive long-term growth. When will that growth come? We’re not ready to say yet, so we’re just trying to really dampen expectations.”

What’s to Come at VF

Darrell said the fourth quarter will likely be lower relative to the third-quarter improvement. The first half of fiscal year 2026 could look like the second half of this year, however.

“Turnarounds are not linear,” Darrell said.

Komp said consumer spending looks stable, but it’s not necessarily strong enough to boost all brands at VF.

“Consumers still are being choiceful, and prioritizing key items, which have favored other brands in the near-term (On/Hoka, UGGs, Sambas),” Komp said. “VF’s management and brand leaders also are being intentional to prioritize steps needed to drive sustained and profitable long-term growth, avoiding short-term fixes that might end up delaying the inflection for Vans, but also should yield a healthier long-run outlook.”

As a follow-up to VF’s corporate strategy Investor Day last fall, brand presidents will take the stage on March 6 to talk more about brand-specific strategies.

“Each session won’t be really long, so you won’t get a deep, hearty strategy from each one of them, but you’ll get a good feel for what we’re doing, and, most importantly, get a good feel for them,” he said. “And the bottom line is, I’m super excited about this business. It’s nice to have a good, strong quarter behind us, but we’re already deeply into the future here.”

Kate Robertson can be reached at kate@shop-eat-surf-outdoor.com.

Strategy & Planning Series
Strategy & Planning Series
Strategy & Planning Series
Strategy & Planning Series