VF Corporation Launches Reinvent Plan: Job Cuts, Brand Review, and Potential Sales
VF Corporation has announced significant changes, including job cuts and a strategic review of its brand portfolio, as part of its Reinvent plan. The company's financial results for Q3 show a decline in revenue across several brands and regions.
VF cut 500 jobs worldwide in November 2023, with CFO Matt Puckett stepping down later this year. The company's revenue declined by 16% year-over-year to $3 billion in Q3. This decline was primarily driven by a 24% drop in the Americas and a 7% decrease in EMEA, while APAC saw a modest growth of 2%.
The performance of individual brands was mixed. Vans, a key driver of VF's growth, saw a 28% decrease in revenue. Other iconic brands also faced challenges: Timberland was down 21%, Dickies down 16%, and The North Face down 10%. Direct-to-consumer (DTC) revenue fell by 8%, and wholesale revenue dropped by 26% in Q3.
VF is reviewing its brand portfolio with the board to ensure long-term value. Potential sales include Timberland, which could fetch about $1.6 billion, and its backpack-focused brands, estimated at around $300 million. The company is also expected to accelerate a turnaround for Vans and bolster brand building and sales in North America as part of its Reinvent plan.
VF Corporation's strategic review and potential sales of brands like Timberland and its backpack-focused labels aim to drive long-term value. The company's Reinvent plan seeks to turn around key brands and boost sales in North America. Despite the recent job cuts and financial setbacks, VF remains committed to navigating these challenges and positioning itself for future growth.
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