Vans Experiences DTC Growth Amid Revenue Declines and Wholesale Challenges
Despite a buzz around its product innovations, including updated versions of Authentic, slip-on, and Old Skool models, Vans reported revenue declines in the first quarter with projections for further decline. CEO Bracken Darrell explained that growth is occurring more rapidly through direct-to-consumer (DTC) channels than wholesale due to greater flexibility in introducing new products directly to consumers. Darrell highlighted positive signs such as increased consumer engagement and sell-out rates, along with the development of new silhouettes like loafers. He anticipates a strong turnaround for Vans' wholesale business by the second half of Fiscal '27, which should help stabilize revenue declines. Dana Telsey from TAG noted that continued DTC momentum in North America is one of three key factors supporting VF's outlook on Vans. Analyst Janine Stichter at BTIG believes current results do not fully reflect Vans' potential and has a 'Buy' rating for shares of VF, indicating confidence despite the short-term challenges.
Tickers: $VFC
Topics: DTC strategy sneaker market Vans VF Corporation wholesale performance