VF Corp.‘s stock surged in after-hours trading after the company swung to a profit and posted better-than-expected revenues.
The parent company to Vans, The North Face and more brands reported that revenues for the quarter were down 6 percent to $2.8 billion, which surpassed the expectations of analysts surveyed by Yahoo Finance and represented improvement from the first quarter. Adjusted earnings per share were 60 cents compared to 63 cents in the same period the prior year.
VF’s stock was up more than 16 percent after markets closed on Monday.
By brand, sales at The North Face were $1.09 billon, down 3 percent from the prior year. The improving Vans brand, which in May tapped former Lululemon chief product officer Sun Choe as its new global brand president, saw sales decline 11 percent to $667.4 million. Timberland sales dropped 3 percent to $475.3 million and Dickies was down 11 percent to $152.4 million.
By region, revenue declines were most pronounced in the Americas, where sales were down 10 percent.
VF chief executive officer Bracken Darrell said in a statement that second-quarter results met expectations and represented “a sequential and broad-based improvement in year-on-year trends.” He noted that the company is still on track to hit $300 million in savings by the end of fiscal-year 2025 as its turnaround plan takes hold and that VF used the proceeds from the $1.5 billion deal to sell off Supreme to EssilorLuxottica to pay down debt.
“Our Americas regional platform is fully operational and showing promising signs, while the performance at Vans is improving,” Darrell said. “In summary, we advanced our turnaround plan toward a return to growth and strong, sustainable value creation at VF.”
VF last year laid out a strategic business transformation plan, part of which involves revitalizing the Vans brand with a new president and reviving business in the U.S.
Looking ahead to the third quarter, VF Corp. expects revenues of between $2.7 billion and $2.75 billion, which would represent a decline of between 1 and 3 percent over the prior year and include negative impacts from foreign exchange headwinds. Adjusted operating income is expected in the range of $170 million to $200 million.
