Vans Reports 23% Revenue Decline Amid Turnaround Efforts, Challenging Earlier Market Predictions

A recent financial report from VF Corporation reveals a significant downturn for its Vans brand, with revenue plummeting 23% in the third fiscal quarter of 2024, which ended December 30, 2023. This performance stands in stark contrast to earlier market commentary, such as a January 2023 Bloomberg Opinion piece by Andrea Felsted, who suggested that "The Vans checkerboard is coming for the Adidas three stripes." Felsted's analysis had highlighted Vans' strong brand identity and cultural relevance as key assets in challenging established sportswear giants.

Vans' direct-to-consumer revenue experienced a 26% drop, while wholesale revenue fell 20% during the quarter. The Americas region led these declines with a 28% decrease, followed by Europe, the Middle East, and Africa (EMEA) at 19%, and Asia Pacific (APAC) at 16%. VF Corporation management acknowledged that the brand's turnaround is proving more challenging and will take longer than initially anticipated.

In response to these struggles, VF Corporation is implementing a comprehensive strategy aimed at revitalizing the Vans brand. Efforts are underway to reset the product assortment, enhance marketing initiatives, and optimize its distribution channels. Despite these challenges, Vans remains a crucial component of VF Corporation's diverse portfolio.

Conversely, Adidas, the sportswear giant, reported a 2% currency-neutral revenue decline for the full year 2023, largely attributed to a –1 billion shortfall from the termination of its Yeezy partnership. However, excluding the Yeezy impact, Adidas's currency-neutral revenues actually increased by 2% in 2023. The company projects a mid-single-digit currency-neutral revenue growth for 2024, signaling a potential recovery and strong performance in its core product lines.