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Saturday, Nov 26, 2022

Vans Takes Q1 Hit

Vans Inc.’s upward trajectory hit a snag in its fiscal first quarter ended June 27.

The Costa Mesa footwear brand saw revenue drop 52%, leading the decline for Denver-based parent VF Corp.’s (NYSE: VFC) active segment, which also includes brands such as Eastpak, JanSport and Kipling.

The active division overall was down 54% in the quarter to $571.3 million in revenue.

Sister brands The North Face and Dickies also saw revenue down in the quarter by 45% and 16%, respectively.

VF executives still remain positive on their longer term outlook for the Vans business with CEO Steve Rendle telling analysts Friday during the company’s quarterly conference call, “the underlying momentum of the Vans brand continues to be really strong” and “we remain extremely confident around the long-range plan.”

Digital helped during the quarter with Vans’ app seeing double-digit growth in downloads for the period. The company’s loyalty program has also translated into 35% higher spend from members versus non-Vans Family members.

The brand has also seen improvement in the business since July, with VF estimating the Vans business will be down less than 15% in its fiscal second quarter.

VF companywide revenue fell 48% in the quarter to $1.1 billion as a result of store closures and the fall off in demand from the pandemic. The company reported a net loss of $285.6 million, compared to a profit of $49.2 million in the year-ago period.

VF Shares were trading down 2.3% to $58.95 in midday trading Monday to a market cap of $22.9 billion.

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