V.F. Corporation (NYSE:VFC) Q3 2024 Earnings Call Transcript

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Bracken Darrell: Thank you, Dana.

Operator: Thank you. Our final question comes from the line of Ike Boruchow with Wells Fargo. Please proceed with your question.

Bracken Darrell: Hi, Ike.

Ike Boruchow: Hey, Bracken. So just two questions from me. I guess, maybe Matt, the first one is on North Face. So just trying to fully understand the — I know you’re not giving guidance, but on the North space specifically, trying to marry the quarter, even extra shifts down mid-single with the comment on January being positive. Just — should we not read too much into that January because of the cold. So I’m just kind of curious, any thoughts on the brand trajectory from here? And then Bracken, just not to be too direct but to Jim’s question about the no secret to us, I mean, is it fair to say that the three big brands are not a part of the strategic portfolio review or is everything, are all options on the table right now?

Bracken Darrell: We’ve been very explicit about saying we’re not going to address that comment, any question about that. We meant it when we said no sacred cow, so we’re really taking an objective look at all the brands. And other than that, we’ll come back and update you over time.

Matt Puckett: I think your question on The North Face, as we look forward, we expect D2C to grow, and we expect D2C to grow in the fourth quarter, and we expect the D2C to continue to grow. It’s good to see the business bounce back in January, particularly the early part of January, really strong as the weather turned here and to some degree in Europe as well. So — but what we’ve said, wholesale is going to be pretty choppy. We’ve got order book visibility obviously for spring and how that will shape — play out and pretty good understanding of what fall is going to look like. So we’d expect that to be more difficult over the next few quarters.

Bracken Darrell: Yes. I’m sorry I just don’t want to piecemeal out that answer. I think we need to give it a more complete way later.

Ike Boruchow: Okay. Understand. Thanks guys.

Bracken Darrell: Okay. That was the last question? All right. Well, thanks all of you for tuning in. Despite these clearly disappointing results, I am super excited about VF’s future, as I said earlier. I think the steps we’re taking to turn things around are happening. The implementation is real and the change is happening fast internally, even though you probably can’t feel it, you certainly can’t see it yet in our numbers. I’ve said it before; we have world-class brands and amazing talent. The foundations on the ways to rebuild this are here to have a great business. So I look forward to talking to you again during the quarter and as we close this next quarter and start the next fiscal year. Thanks again. And Matt, thank you.

Matt Puckett: Thanks, Bracken. Thanks, everyone.

Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.

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