Vans' revenue declines by over 20% during ongoing transformation project
In a recent announcement, VF Corporation, the parent company of popular brands like Vans, The North Face, Timberland, and Dickies, has revealed its strategy to navigate the challenging business environment.
The corporation's overall revenue in the fourth quarter of its 2025 fiscal year, amounting to $2.1 billion, showed a 5% decrease year over year. However, excluding Vans, the total revenue would have increased. Vans, a significant brand under VF, recorded a 22% drop in revenue, a challenge attributed to challenging traffic in the global Direct-to-Consumer (DTC) channel.
Darrell, VF's CEO, expressed confidence in the company's actions, stating that they will enable its brands to return to growth and deliver strong, sustainable value creation. He also mentioned that VF's plan to turn around its business is "well underway."
One of the key components of this turnaround plan is "Project Elevate," a strategy released by VF in early October 2023. This plan focuses on improving Vans' marketing and optimising the North American sales strategy. The plan has resulted in the company laying off hundreds of people.
In a positive note, sales from new Vans products grew, more than offsetting declines of some of its "icons" products. The North Face and Timberland, on the other hand, saw revenue growth of 2% and 10%, respectively, while Dickies fell 14%.
VF sources less than 2% of its products from China, with its top four sourcing countries being Vietnam, Bangladesh, Cambodia, and Indonesia. The company also accelerated production and shipments into the U.S. during the 90-day tariff pause period.
Evercore analysts expect Vans' DTC revenue to decrease more than 10% in the current year. Binetti, an analyst, suggests Vans might need to consider additional store closures due to ongoing challenges in the DTC channel.
The corporation's plan includes the naming of new executives and the launch of new campaigns for Vans. VF is also exploring strategic price actions to navigate increased volatility in the macro environment.
Looking ahead, for the first quarter of VF's 2026 fiscal year, the company expects revenue to decrease between 3% and 5%. Despite the challenges, VF remains committed to its turnaround plan and is optimistic about its future.
