In the midst of a turnaround, VF Corp.’s executives are expressing confidence that their efforts are working.
In early 2024, the company initiated a strategic review of its brand portfolio, leading to the sale of Supreme for $1.5 billion — down from the $2.1 billion VF Corp. acquired it for just four years prior. And late last year, the company sold its Dickies brand for $600 million, which CFO Paul Vogel said would “help further accelerate the transformation of VF back to being a growth company while also further enabling us to pay down our debt.”
VF Corp. has also reworked its team — by initiating several rounds of layoffs and bringing in fresh leaders.
In 2024, the company hired Vogel as chief financial officer, Sun Choe as global brand president of Vans and Caroline Brown as global brand president of The North Face.
“We really have changed a lot of leaders. At the time, I did not expect to do that. It wasn't because we didn't have great people — but … we didn't have the right people,” Bracken Darrell, who was named VF Corp.’s CEO in 2023, said during a Tuesday panel at ICR’s conference in Orlando, Florida. “I've never done that before, where we changed that many people in the first year.”
And just over two years after launching its turnaround plan, executives are starting to see progress.
Vans — which has dragged down VF’s sales in recent years — is looking to capitalize on the “elasticity” of its brand by leaning into the different demographics it attracts, Choe said during the National Retail Federation’s Big Show in New York City on Tuesday.
The brand brought back Warped Tour last year to celebrate the music festival’s 30th anniversary. At the same time, Vans’ subbrand, Off the Wall, showed up during Milan Design Week.
It’s all part of Choe’s effort to push the brand beyond the “silos” people have placed it in: a brand exclusively catered to skateboarding and action sports. Over the past year, Vans has launched a collaboration with Valentino and partnered with SZA.
“It really is a demonstration of us being able to have conversations with more consumers and dimensionalizing the brand, rooting ourselves in that ‘Off the Wall’ spirit,” Choe said.
While the brand is “in the earlier innings” of its transformation, according to Choe, it’s focusing on a key demographic that it says is accelerating its turnaround: women.
“If you think about how many purchases are made from women — whether it's the mom or the teenage girl — [it’s] really influencing what men purchase and what boys purchase,” Choe said.
'More than just a series of incremental changes'
While The North Face and Timberland have been brighter spots for the company in recent quarters, the brands are looking for ways to extend their reach while remaining true to its brand heritage.
For The North Face, that’s meant honing in its assortment to focus on three core categories — snow, climb and trail.
“Because of the long history and heritage of the brand — like many brands who have been around for a long time — we started to sway and chase areas that … maybe we didn't really have any business being in,” Brown said.
That doesn’t mean it’s limiting the consumers it’s seeking to attract.
“We want to be a democratic brand. If you're in the snow … we got you covered. You want to climb K2? We got you covered. You want to build a snowman in your backyard? We got you covered,” Brown said.
But maintaining its focus on performance as the inspiration for everything at the brand is paramount for The North Face. Brown highlighted its Nuptse jacket as something that was designed for Mount Everest, but is now found on the streets of New York City.
“We're super proud of that … but we will lose that business if we do not continue to reinforce the foundation of performance, which is what brings people to The North Face in the first place,” Brown said.
And Timberland, which has seen sales gains more recently, is looking for ways to capitalize on pop culture moments while also providing unique services to customers. The brand has teamed up with celebrities like Teddy Swims, Naomi Campbell and Spike Lee. It has also experimented with customization options for consumers through its “Maker Shed,” which offers services like laser etching and embroidery.
“When I think about transformation generally, it's more than just a series of incremental changes. It's comprehensive. It's far reaching,” Nina Flood, global brand president at Timberland, said. “You have to be willing to challenge everything.”
Cara Salpini contributed to this story.
