Vans parent VF Corp. was cryptic in its confirmation of more layoffs under a new reorganization strategy.
The Denver-based multi-brand operator is further whittling its staff this month in news first reported by Footwear News.
VF told FN the cuts relate to a reorganization under a “new business model.”
“This work relates to the company’s previously announced turnaround strategy,” the company told FN, without offering specifics on how many positions or what divisions were impacted.
The layoffs are the latest in a series of moves to cut costs and debt as some of its largest businesses, including Vans, seek a turnaround.
In late 2023, the company laid off roughly 500 employees across brands and regions. There was also about a dozen senior positions eliminated at Vans last spring, including Chief Product & Merchandising Officer Marissa Pardini.
Comms Strategy
Last year VF ran up against activist investor pressures to swiftly address the shortcomings of its flailing Vans business.
That led to a number of press touting the Costa Mesa shoe brand’s product innovations and fresh marketing.
VF Corp. CEO Bracken Darrell told investors of “green shoots” in the Vans business during its May earnings update. He also boldly stated the Vans reset was “largely done.”
The numbers haven’t matched the more upbeat communications strategy.
For the company’s fiscal second quarter ended Sept. 28, VF said Vans revenue fell 11 percent from the year-ago period.
Just a few days after the quarter ended, VF sold New York skate brand Supreme for $1.5 billion to eyewear conglomerate EssilorLuxottica. Activists had been pressing for the brand’s sale after being unimpressed with its contributions to the overall business. The sale reflected a loss after VF shelled out $2.1 billion to buy VF in 2020.
The same month of the Supreme sale VF announced financial goals in the medium term for investors, including an adjusted operating margin of at least 10 percent and net leverage of 2.5 times its adjusted earnings before interest, taxes, depreciation and amortization.
Progress on the reorganization is expected when VF reports results for its fiscal third quarter Jan. 29.
Be First to Comment