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VF Corporation’s wholesale growth drives strong performance

VF Corporation Brands

VF Corporation delivered stronger-than-expected results in its third fiscal quarter, driven largely by its wholesale segment. The company reported a 2.1% increase in total revenue, reaching $2.8 billion. This growth was heavily supported by an 8% rise in wholesale sales, reflecting increased demand, better re-order activity, and fewer cancellations from retail partners.

The wholesale division’s success underscores a strategic shift as VF Corporation aims to strengthen its relationships with retail partners. By focusing on key retail accounts, the company has managed to optimize inventory flow and enhance sell-through rates, reducing markdown pressure. Wholesale partners responded positively to a more streamlined supply chain and product assortments, leading to better stock replenishment and increased order frequency.

Brand Performance in Wholesale

The North Face saw a 5% year-over-year revenue increase, reaching $1.25 billion. This performance was fueled in part by robust wholesale demand across key regions, with particularly strong growth in the Asia-Pacific market. The brand’s successful collaborations also played a role in driving excitement among retailers and consumers alike, prompting higher wholesale order volumes.

Timberland posted an impressive 11% revenue growth, benefiting from a focused marketing strategy that reinforced the brand’s heritage products. Retailers demonstrated high demand for the iconic yellow boot, leading to expanded shelf space in key wholesale accounts. The brand’s collaborations with high-fashion labels helped elevate its status in premium retail channels, contributing to increased wholesale pricing power.

In contrast, Vans faced ongoing challenges, with revenue declining by 9% year-over-year. Although the brand is working to stabilize its wholesale relationships, demand fluctuations and shifting consumer preferences have impacted sell-through rates. Retail partners have been cautious in placing large orders, reflecting uncertainties in the brand’s near-term momentum.

Wholesale Strategy as a Growth Driver

VF’s wholesale-driven growth was particularly critical in counterbalancing declines in direct-to-consumer (DTC) sales, which fell 3% year-over-year. While the company continues to refine its retail strategy, wholesale remains a crucial pillar, ensuring broad market reach and revenue stability. The organization has been working closely with key accounts to fine-tune product allocations and improve inventory efficiency, which has proven instrumental in maintaining momentum despite broader market challenges.

Operational improvements have also contributed to profitability gains. The company’s net income rose to $167 million, a significant recovery from the previous year’s losses. Wholesale inventory management was a key focus area, with a $300 million reduction in net inventories helping streamline operations and improve cash flow. Debt reduction efforts, including a $1.9 billion decrease driven by the sale of Supreme, further strengthened the financial position.

Future Outlook

As part of its broader restructuring initiative, VF Corporation has reduced its global workforce by approximately 5,000 employees since the end of fiscal 2023. This move is designed to drive efficiency, cut costs, and refocus efforts on high-performing segments, with wholesale being a primary area of investment.

Looking ahead, the company remains cautious about short-term fluctuations but is optimistic about long-term wholesale expansion. Strengthening partnerships with key retailers, refining product assortments, and improving supply chain efficiency will remain top priorities. While challenges persist in some brand segments, VF Corporation’s ability to drive growth through wholesale underscores its strategic pivot toward a more balanced and resilient business model.

VF Corporation Brands

VF Corporation delivered stronger-than-expected results in its third fiscal quarter, driven largely by its wholesale segment. The company reported a 2.1% increase in total revenue, reaching $2.8 billion. This growth was heavily supported by an 8% rise in wholesale sales, reflecting increased demand, better re-order activity, and fewer cancellations from retail partners.

The wholesale division’s success underscores a strategic shift as VF Corporation aims to strengthen its relationships with retail partners. By focusing on key retail accounts, the company has managed to optimize inventory flow and enhance sell-through rates, reducing markdown pressure. Wholesale partners responded positively to a more streamlined supply chain and product assortments, leading to better stock replenishment and increased order frequency.

Brand Performance in Wholesale

The North Face saw a 5% year-over-year revenue increase, reaching $1.25 billion. This performance was fueled in part by robust wholesale demand across key regions, with particularly strong growth in the Asia-Pacific market. The brand’s successful collaborations also played a role in driving excitement among retailers and consumers alike, prompting higher wholesale order volumes.

Timberland posted an impressive 11% revenue growth, benefiting from a focused marketing strategy that reinforced the brand’s heritage products. Retailers demonstrated high demand for the iconic yellow boot, leading to expanded shelf space in key wholesale accounts. The brand’s collaborations with high-fashion labels helped elevate its status in premium retail channels, contributing to increased wholesale pricing power.

In contrast, Vans faced ongoing challenges, with revenue declining by 9% year-over-year. Although the brand is working to stabilize its wholesale relationships, demand fluctuations and shifting consumer preferences have impacted sell-through rates. Retail partners have been cautious in placing large orders, reflecting uncertainties in the brand’s near-term momentum.

Wholesale Strategy as a Growth Driver

VF’s wholesale-driven growth was particularly critical in counterbalancing declines in direct-to-consumer (DTC) sales, which fell 3% year-over-year. While the company continues to refine its retail strategy, wholesale remains a crucial pillar, ensuring broad market reach and revenue stability. The organization has been working closely with key accounts to fine-tune product allocations and improve inventory efficiency, which has proven instrumental in maintaining momentum despite broader market challenges.

Operational improvements have also contributed to profitability gains. The company’s net income rose to $167 million, a significant recovery from the previous year’s losses. Wholesale inventory management was a key focus area, with a $300 million reduction in net inventories helping streamline operations and improve cash flow. Debt reduction efforts, including a $1.9 billion decrease driven by the sale of Supreme, further strengthened the financial position.

Future Outlook

As part of its broader restructuring initiative, VF Corporation has reduced its global workforce by approximately 5,000 employees since the end of fiscal 2023. This move is designed to drive efficiency, cut costs, and refocus efforts on high-performing segments, with wholesale being a primary area of investment.

Looking ahead, the company remains cautious about short-term fluctuations but is optimistic about long-term wholesale expansion. Strengthening partnerships with key retailers, refining product assortments, and improving supply chain efficiency will remain top priorities. While challenges persist in some brand segments, VF Corporation’s ability to drive growth through wholesale underscores its strategic pivot toward a more balanced and resilient business model.

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