MW VF Corp.'s stock surrenders gains from profit beat as CEO warns of choppy turnaround

By Steve Gelsi

North Face and Timberland sales boost U.S. results, but Dickies and Vans lag

VF Corp.'s stock moved into the red after posting a healthy gain earlier in the session on Wednesday, as the apparel and footwear maker's results weren't strong enough for the stock to sustain its rally of more than 20% since Jan. 1.

While VF's $(VFC)$ fiscal third-quarter results blew past analyst estimates on strength in the company's Timberland and North Face brands, sales of Dickies and Vans fell from year-ago levels.

Chief Executive Bracken Darrell told Wall Street analysts that the company's turnaround plan remains on track after its Americas business posted 2% year-over-year quarterly growth, adjusted for currency changes, for the first time in more than two years.

But he warned the positive numbers may not continue without interruption.

"It's early days, so we may not see growth every quarter, as turnarounds often aren't linear," Darrell said. "But it's good to see green numbers again."

VF Corp.'s stock fell back by 2.3% Wednesday after rising as much as 7% earlier in the day.

The owner of Timberland, North Face, Vans and Dickies brands reported adjusted earnings of 62 cents a share, well ahead of the FactSet consensus estimate of 34 cents a share.

Revenue of $2.83 billion also beat the analyst expectation of $2.75 billion.

Timberland's 11% jump in revenue over the year-ago period outpaced a 5% gain by North Face. By contrast, Vans sales fell 9% from last year and Dickies sales moved lower by 10%.

North Face's third-quarter revenue increased to $1.25 billion from $1.19 billion in the year-ago period, while Timberland's grew to $527 million from $473 million and Vans' fell to $607.6 million from $668.2 million.

Dickies' third-quarter revenue fell to $133.6 million from $147.9 million in the year-ago period.

While Timberland footwear has been around for many decades, its yellow boots began gaining fashion cache in the 1990s as hip-hop artists such as Jay-Z, Tupac Shakur and the Notorious B.I.G. started wearing them.

In September, Timberland launched an ad campaign under the slogan "Iconic" featuring images of celebrities including supermodel Naomi Campbell and singer Teddy Swims.

VF said the marketing effort fueled a strong holiday season for the company.

"I feel really excited about where we're going with Timberland," Darrell told analysts. "But there's a lot of room to work there and a lot of places to go on."

Including Tuesday's moves, VF Corp.'s stock has risen 21.4% so far in 2025, while the S&P 500 SPX has risen 2.8%.

-Steve Gelsi

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January 29, 2025 12:11 ET (17:11 GMT)

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