V.F. Corporation Demonstrates Resilience Amidst Market Challenges

$VFC

V.F. Corporation (NYSE: VFC), a renowned player in the apparel industry, is making significant strides with its strategic initiatives, particularly through its Reinvent transformation program. This program is designed to bolster brand building and enhance operating performance, focusing on popular brands like Vans and The North Face.

V.F. Corporation has seen a surge in digital sales, particularly in Europe and Asia. This increase is supported by strong DTC comparable store sales growth and an expansion of connected ecosystems in major markets. The strategic emphasis on full-price sales and enhanced average unit retail prices has exceeded expectations, underscoring the strength of its brand positioning and sustained demand for its core and seasonal products.

Looking ahead to the rest of fiscal 2025, V.F. Corporation anticipates a constant-currency revenue growth of 6-7%, including the impact of adverse currency fluctuations. The company expects the operating margin to improve by 120-160 basis points in constant currency, driven by a gross margin expansion of 130-170 basis points.

The stronger dollar is anticipated to slightly reduce overall revenues for fiscal 2025 and have a more pronounced effect in the fourth quarter. Nonetheless, the company’s strategic initiatives and strong brand portfolio provide a solid foundation for market resilience.

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