By
Bloomberg
Published
October 28, 2024
VF Corp., the apparel company that owns the Vans and North Face brands, reported quarterly revenue that beat Wall Street expectations.
Shares jumped as much as 19% in post-market trading Monday. They had dropped 11% year to date through the market close.
The Denver-based company reported adjusted earnings per share from continuing operations of 60 cents a share, well above analysts’ expectations for 38 cents. Revenue in the fiscal second quarter ending Sept. 30 sightly topped expectations. Gross margin was 52.2%, above the 51.3% in the same period a year ago.
While sales from its North Face, Vans, Timberland and Dickies brands all fell year over year, the declines were far less than in previous quarters.
The company has been working to turn around its Americas operations. Chief Executive Officer Bracken Darrell, who joined the company in July 2023, has made multiple leadership changes to try to revitalize its brands, which also include Altra, Eastpak, Icebreaker and Jansport.
Net debt at the end of the quarter was $5.7 billion, down about $446 million from the year-ago period. In the statement, Darrell said that following the sale of the Supreme brand earlier this month, the company “delivered on our commitment to pay down VF’s $1 billion term loan due December 2024.”
On its earnings call, Darrell said the company would provide “a deeper look at what our game plans are” at its investor day presentation on Oct. 30.
