VF Corp. Beats Sales Expectations, Raises Full-Year Guidance
VF Corp. (VFC), the parent company of apparel brands Vans, North Face, and Dickies, reported strong sales for its fiscal third quarter, surpassing analyst estimates.
Key Performance Indicators:
* Revenue increased 2% to $2.8 billion, exceeding expectations.
* Timberland brand sales surged 11%.
* Shares rose 2.5% in premarket trading.
* Full-year free cash flow guidance raised to $440 million.
Turnaround Plan Progress:
VF Corp. is implementing a turnaround plan under CEO Bracken Darrell, focusing on:
* $300 million in cost reductions
* Leadership team reorganization
* Revitalization of brands
Challenges and Opportunities:
* VF faces challenges in improving Americas operations amidst squeezed consumer spending.
* Holiday sales have been mixed for the industry, with some like Lululemon showing growth while others like Macy's faced declines.
Recent Developments:
* North Face, Vans, Timberland, and Dickies sales declined moderately in the previous quarter.
* Company paid down $1 billion loan.
* Supreme brand sold in a $1.5 billion cash deal.