The North Face Drives Growth for VF Corp. in Q2
Despite an overall revenue decline for VF Corp. in the second quarter, The North Face is showing signs of promise.
The maker of brands such as Vans, The North Face and Timberland on Wednesday reported revenues of $3.1 billion in the second quarter, marking a 4% decline. Adjusted earnings per share were $0.73, down 34% and in line with analysts expectations, according to Yahoo.
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By brand, Vans revenue declined by 13% to $1 billion in Q2 and The North Face revenues were $1 billion, up 8% (or 14% in constant dollars). This marks the outdoor brand’s second largest quarter in history. In Q3 of last year, The North Face surpassed $1 billion in sales for the first time.
Year-to-date, The North Face has grown to 21%.
“On The North Face, we continue to be very excited and proud of what that team has done,” VF Corp. chairman, president and CEO Steve Rendle said in a Wednesday call with analysts, adding the the brand is seeing growth across all regions, channels and product categories.
While VF Corp once again downgraded its financial outlook for fiscal year 2023, the company expects the The North Face to grow by at least 12%. Heralding this growth is Nicole Otto, a 16-year Nike veteran who joined The North Face as global brand president in June. In her new role, Otto has focused on driving engagement, leveraging consumer insights and building loyalty.
In addition to outwearwear, The North Face is making a push into everyday clothing meant for the whole year in the Americas. This region saw a double-digit growth in DTC within this category in Q2. Rendle also called out some recent notable footwear moments for the brand, including The North Face x Gucci Chapter 3 collaborations and the Vectiv Fastpack Futurelight boot.
In addition to product innovation, The North Face last week outlined a goal to open 300 retail and partner store locations across the world over the next five years. The brand also plans to revamp existing stores in its fleet to create a seamless experience across all locations.
“As consumers want to engage with The North Face physically as well as digitally, we want to create consistent and welcoming experiences across all our retail locations for both new and established explorers,” said Jason Thomas, the brand’s senior director of retail. “This growth strategy will allow us to share our values and connect with customers on a deeper level in multiple different locations and touch points across the globe.”
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