VF Corporation Reports Falling Revenues in Q1 of FY2025 After Selling Supreme for $1.5 Billion USD
VF Corporation, the parent company of popular brands such as The North Face, Vans, and Timberland, has released its official financial report for the first quarter of the fiscal year 2025. The report reveals a decline in revenues, reaching $1.9 billion USD, a 9% decrease from the previous year (or 8% in constant dollars).
In July, VF Corporation made headlines when it sold Supreme to EssilorLuxottica for a whopping $1.5 billion USD. However, this sale did not prevent the company from experiencing a decline in revenues. VF Corporation’s president and CEO, Bracken Darrell, stated, “As I complete my first year at VF, I feel more energized than ever. While the business is still down, we have seen a moderation in the rate of decline compared to the previous quarter and across most of our brands.” Darrell also mentioned the company’s progress in achieving cost savings and strengthening their balance sheet through the sale of Supreme.
On a brand level, The North Face saw a 3% decrease in revenues (or 2% in constant dollars), but did experience a 6% increase in global direct-to-consumer sales (or 8% in constant dollars). Vans, on the other hand, saw a significant decline of 21% in revenues, although this was an improvement from the previous quarter. Timberland’s sales were down 10% (or 9% in constant dollars), and Dickies experienced a 15% decrease (or 14% in constant dollars).
Looking ahead, VF Corporation has reiterated its guidance for free cash flow and non-core physical asset sales, expecting to reach approximately $600 million. This excludes the impact of the Supreme divestiture, which is expected to be completed by the end of calendar year 2024. To view VF Corporation’s full Q1 FY2025 financial report, click here.
