VF Corporation unveils new financial targets for FY25 growth

VF Corporation, the parent company of brands like The North Face, Vans, and Timberland, announced on Thursday at its FY25 investor day new financial targets and a streamlined strategy.

Central to this plan is a focus on strengthening its balance sheet, with VF focused on debt reduction and maximizing free cash flow to reach its optimal capital structure.

Notably, it aims to achieve an adjusted operating margin of at least 10% and a gross margin of 55% or more, while aiming to reduce SG&A to 45% of revenue or lower. The company also intends to bring its net leverage down to 2.5x or below.

VF’s updated roadmap also includes plans to maximize its performance-driven portfolio by doubling down on brands rooted in performance.

To sharpen its competitive edge, VF is also investing in six key capabilities: advanced design, modern marketing, a global commercial platform, integrated business planning, AI-driven initiatives, and talent development.

“We activated our transformation program, Reinvent, during my first 15 months at VF, through which we are making excellent progress advancing our priorities and reshaping the company,” said Bracken Darrell, president and CEO. 

“We are accelerating the pace of change by building new capabilities across our organization to leverage our powerful portfolio of brands for long-term, sustainable, profitable growth. We are beginning to see benefits from our initiatives, but significant upside remains as we create a structure primed for growth while transforming our company and its culture. This strong foundation positions us to quickly enhance VF’s profitability while enabling further investment in sustainable shareholder value creation.”