Revenue Growth and Improved Profitability
VF Corporation reported a 2% revenue growth in Q3, along with a significant improvement in profitability. Gross margins increased by 150 basis points, and operating margins rose by 360 basis points to over 11%.
Debt Reduction Achievements
Net debt was reduced by nearly $2 billion, representing a 40% reduction over the past year. This progress is attributed to divesting non-strategic assets and improving operating earnings.
Successful Brand Performance
The North Face and Timberland both reported revenue growth, with Timberland up 12% and The North Face up 5%. Notable collaborations and product innovations contributed to these successes.
Cost Reduction and Efficiency Improvements
VF is on track to deliver $300 million in gross cost savings, with an additional $55 million generated during Q3. The company plans to unlock another $500-600 million in operating income expansion.