Why Vans and The North Face Owner VF’s Stock Is Soaring Tuesday

VF Corporation (VFC) shares skyrocketed in early trading Tuesday after the struggling apparel maker posted better-than-expected results and gave a strong outlook, raising confidence in the company’s turnaround plan.

The firm behind The North Face and Vans brands reported adjusted earnings per share (EPS) of 60 cents for the second quarter of fiscal 2025, its first profit in three quarters and well above analysts’ estimates. Revenue fell 5.6% from a year ago to $2.76 billion, also ahead of forecasts.

VF’s gross margin improved 120 basis points (bps) to 52.2%, while inventories fell 13%, and its debt of $5.7 billion was lower by about $446 million from the previous year. The company said that after the quarter, it received $1.475 billion of net proceeds following the close of the sale of its Supreme unit to France’s EssilorLuxottica.

Sales of The North Face dropped 3.3% to $1.09 billion, and they were down 10.9% to $667.4 million at Vans. Sales slid 2.7% at Timberland, 11.1% at Dickies, and 2.9% for other brands.

CEO Bracken Darrell said VF’s results “met our expectations and reflect a sequential and broad-based improvement in year-on-year trends.” He added the company made further progress in its cost-cutting efforts, and is on track to meet its fiscal 2025 goal of $300 million in savings.

VF shares were up over 27% at $21.59 in early trading Tuesday, bringing them into positive territory for 2024.