**VF Corp Surpasses Q3 Revenue and Profit Expectations Amid Brand Revitalization Efforts**
On January 29, VF Corp, a leading apparel and footwear manufacturer, reported third-quarter results that exceeded revenue and profit forecasts, driven by initiatives to boost demand and refresh its product offerings for brands such as Vans, North Face, and Timberland. The company’s shares rose nearly 6% in premarket trading.
Favorable weather conditions in the U.S. have spurred demand for outdoor and activewear, particularly during the holiday season. Increased full-price sales and cost-reduction strategies under its turnaround plan contributed to a 360 basis point improvement in adjusted operating margins, reaching 11.4% for the quarter.
This marks the third consecutive quarter that VF Corp has outperformed revenue and profit estimates, recovering from previous demand challenges and losses experienced until early 2024. The company’s turnaround strategy focuses on enhancing the Vans brand, achieving $300 million in cost savings by the end of fiscal 2025, and divesting non-core assets, including its streetwear brand Supreme.
CEO Bracken Darrell stated, “While there is still work to be done to consistently achieve double-digit operating margins and sustainable top-line growth, we are making significant progress in transforming VF into a distinct, multi-brand operator.”
For the quarter ending December 28, VF Corp reported a 2% increase in revenue to $2.83 billion compared to the previous year, surpassing analysts’ expectations of $2.75 billion. On an adjusted basis, the company earned 62 cents per share, exceeding the forecast of 34 cents. Looking ahead, VF Corp anticipates fourth-quarter revenue to decline between 4% and 6%, aligning closely with expectations for a 4.96% decrease.
