VF(US:VFC) Bei Jing Shang Bao·2025-08-05 14:07Core Viewpoint - Despite the implementation of a restructuring plan for nearly two years, the company continues to report losses, with a slight improvement in performance noted in the latest quarterly results [2][4]. Financial Performance - For the first quarter of fiscal year 2026, the company reported total revenue of $1.8 billion, remaining stable compared to the previous year [2]. - The operating loss was $56 million, which is an improvement compared to the expected loss of $110 million to $125 million [2]. - The Vans brand experienced a revenue decline of 15% year-over-year, generating $498 million in the first quarter [2][3]. Brand Performance - The Vans brand has consistently faced revenue declines, with a 16% drop to $2.35 billion in fiscal year 2025 and a 24% decline in fiscal year 2024 [3]. - In contrast, The North Face brand achieved a 5% year-over-year growth, reaching $557 million in revenue for the first quarter [2][3]. Restructuring Efforts - The company announced a restructuring plan in October 2023, with a focus on transforming the Vans brand as a key task [3]. - The global president of Vans was replaced shortly after the restructuring announcement, with a new hire from Lululemon aimed at accelerating the brand's transformation [3][4]. - The management expressed confidence in the ongoing transformation, stating that the company is entering a growth phase despite the current challenges faced by the Vans brand [4]. Strategic Focus - The company is closing underperforming Vans stores and reducing discount activities to drive growth for the brand [4]. - Emphasis on product innovation, youth-oriented and fashionable products, and enhancing digital capabilities is seen as essential for the Vans brand to regain market traction [4].