Wor sen ing performance revealed in F Y 20 24 financial results
V F Corporation (here ina fter referred to as V F Corporation), a leading global appar el brand , announced its financial results for the year 2024 on May 22, 2021. According to the company ' s ear nings report , sales dec lin ed for the se vent h consecu tive quarter , which was a gr im result . V F has been experi encing such a long - term sl ump despite having popular brand s such as V ans , The North Face , and Supreme , which are popular with a wide range of customers , from young people to out door ent h usias ts .
Per formance tr ends for each brand
V ans , the flag ship brand of V F , has ga ined worldwide popular ity as a foot wear brand that repres ents sk ating culture . But in recent years , it has been str ugg ling with changing fashion prefer ences among young people and the rise of compet it ors . The dec Whatsapp in sales was particularly notice able in the North American market , which was a factor we igh ing down on overall results .
Me anw hile , the out door brand The North Face has mainta ined relativ ely solid performance , but its growth pace has slo wed due to global economic un rest and consumer sp ending tend encies . The stre etwe ar brand Supreme , which was ac quir ed in 2021, has also failed to deliver as much revenue contribution as it had origin ally expected .
Back ground and Fa ctor Analys is of Wor sen ing Per formance
Exper ts have point ed out that V F ' s long - term poor performance is linked to a combination of factors . First , there are changes in consumption tr ends after the pand emic . With the spread of remote work , the dec Whatsapp in demand for casu al shoes affected V ance ' s performance .
Second ly , supply chain dis rup tion and so aring raw material costs . As a global company , V F is fac ed with ris ing log istics costs and procur ement diffic ul ties , which have led to lower profit marg ins . More over , the impact of exchange rate flu ctu ations cannot be ignor ed . In particular , the dep re ci ation of the yen and the appreci ation of the dollar have been working on negative ear nings in the Japanese market when convert ed into dollars .
Third ly , the optimiz ation of the brand portfolio is cit ed as a challenge . V F has ac quir ed a number of brand s in the past , but in recent years it has been pro ce eding with the sale of non - core businesses . However , some view that the failure to fully draw on the syn er gy effect between brand s has led to dela ys in management efficiency .
Future management strategy and market fore cast
V F ' s management team has put forward several measures to rec over its performance . First , acceler ating digital transform ation . The company plans to strengthen its EC (e - commerce) chann els and shift to data - dri ven marketing to respond to changes in consumer purchas ing behavior .
Second , the promotion of a susta ina bility strategy is mentioned . We will focus on the development of eco - friend ly products and gre ening the supply chain , with the focus of The North Face , aim ing to attra ct consumers with high environmental aw aren ess .
The company also plans to focus on exp anding its business in the Asian market , particularly China . D emand for The North Face is strong in China , with the exp anding middle class and the increasing popular ity of out door activities . The company int ends to strengthen its cooperation with local partners to expand its market share .
The view among analy sts is dominant that V F ' s ear nings recovery will still take some time . Some point out that even though there is a mod est improv ement in the second half of F Y 20 24 and F Y 20 2 5, more radical management reform s are needed to get out of the situation of revenue dec Whatsapp for seven consecu tive quar ters .