VF Corp., the parent company of popular brands such as North Face, Vans, and Timberland, has taken strategic steps to reduce prices at two of its key brands, signaling a response to the cooling inflationary environment. VF Corp.’s CEO, Bracken Darrell, noted that as inflationary pressures have eased compared to the previous year, they have adjusted prices for selected Timberland boots, offering them for under $200. Price reductions have also been applied to certain Vans products.
Vans and Timberland are prominent brands within VF Corp’s portfolio, contributing significantly to the company’s revenues with sales of $749 million and $489 million, respectively, during the quarter ending in September. The North Face, another flagship brand of VF Corp, led in sales with a total of $1.1 billion during the same period.
Recent data from the Bureau of Labor Statistics has shown a noticeable decrease in apparel prices across various categories, marking the most substantial reduction since the early stages of the COVID-19 pandemic. VF Corp. has been navigating challenges related to softer sales, particularly at the Vans brand, which saw a 21% decline in revenue in the most recent quarter. In response, VF Corp. is actively searching for a new president to lead the Vans brand.
Despite robust sales growth at Vans in late 2021 and early 2022, the brand’s performance subsequently softened. Bracken Darrell emphasized the need to gain insights into the reasons behind such rapid growth and to develop a contemporary innovation strategy for the brand.
VF Corp. is also implementing a transformation plan, encompassing debt reduction and a cost-saving initiative targeting $300 million in savings. The company is actively seeking to divest its backpacks business and has committed to avoiding new brand acquisitions until debt levels have been substantially reduced.