VF Corp. shares soared after the the apparel and shoe company reported fiscal first-quarter earnings that beat Wall Street expectations, signaling that turnaround efforts are showing results.
The North Face
The company reported revenue of $1.8 billion, better than the $1.7 billion forecast by a Bloomberg survey of analysts. An adjusted loss of 24 cents was narrower than expectations.
Revenue at Vans fell 14% in the most recent quarter versus last year. That’s an improvement from the prior quarter.
VF Corp. sees a second-quarter revenue decline of between 2% and 4% year-over-year.
The owner of the North Face brand is in the midst of a turnaround led by Chief Executive Officer Bracken Darrell, who took the helm about two years ago. He’s focused on revamping its Vans brand, where sales have been falling. The company is closing underperforming Vans stores and trying to pull back on discounting of the brand.
“We have reset the table and soon will move to growth,” Darrell said in a statement.
VF Corp. shares rose 17% at 6:23 a.m. in Tuesday premarket trading in New York. The stock has fallen 42% for the year through Tuesday’s close.
