Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| Each brand will have powerful capabilities to build innovative products consumers are hungry for with powerful marketing to tell their story |
| I've said it before; we have world-class brands and amazing talent |
| Despite these clearly disappointing results, I am super excited about VF's future, as I said earlier |
| 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 |
| This was the last quarter operating without an America's regional platform and we expect these changes to result in improved America's results over time |
| So I'm really excited about the team we have in place, and I think it's going to get stronger and stronger |
| But we're still in line for the $600 million, a few puts and takes, but we really encouraged by the inventory, I think, particularly great to see where we are at the end of the third quarter ahead of schedule |
| We now have our new commercial organization in Americas platform in place and are confident this will translate to improved results for the brand and across the rest of our brands |
| And as we enter Q4, especially as we move into the beginning of next fiscal year, I think it will be very far along in terms of having an organization that I think is really poised to win in this turnaround |
| The only the thing I'd say about Europe is inventories in the marketplace across the board are really well positioned |
| We have created a package of a deeply rooted brand purpose, clear segmentation, 18-month marketing plan, and a solid product roadmap |
| First, we continue to see a strong performance from newer things in the Vans product portfolio, which are becoming a larger share of our business |
| So I feel really good about it |
| So I think overall, we feel pretty good about where we are |
| And I've been through both sides of that equation, the two of them together, two or three times now, and I'm still not done, but I feel good about it, very good about it |
| But what I would say is we've got a great – I mean I think a strong kind of very punctuated plan that combine – that integrates the marketing insights and then the marketing programs with the new products that are launching |
| But what I would say is if you kind of step back and look at where we are, and good to see our margins turn positive and that will, that will continue, I think, moving forward as we think about Q4 and beyond |
| So I'm very excited about it |
| In early Q4, you might have seen the brand's Louis Vuitton Timberland collaboration created enormous buzz at Paris Fashion Week and I'm excited about the brand's potential |
| I think the team itself is very strong here, all up and down |
| In fact, we are the highest ranked in our industry |
| I'm immensely proud of our ongoing commitment to sustainability and it shows what we're capable of in this business across all parts of it when focused and invested |
| And really what the fundamental consumer power of the brands is I'm really excited about them, even the ones that some -- they probably won't be part of VF, I feel really good about |
| The second one is I feel just really, really good about the brands |
| So I think the underlying drivers of opportunity and the underlying drivers of the business are really strong |
| All the metrics that we look at from a consumer standpoint continue to be good |
| All that said, the strength of the brand remains really good |
| I think the brand is very strong |
| I'm excited about what's ahead |
| Freight continues to be a real favorable number for us and a really modest benefit from price |
| Statement |
|---|
| The Americas region results were challenged and our performance fell short of our expectations |
| Dickies results continued to be pressured with revenue down 17% in a quarter |
| Total revenue was down 17% for the quarter as both global Vans and the Americas results remained pressured as expected |
| Continued caution from wholesalers in our key markets, translating to softer future order books globally, but with the greatest impact in the Americas |
| The North Face wholesale channel, particularly in the U.S., will remain challenged and finally a choppier Americas and European macro environment |
| Finally, results were impacted by the cyber security incident in December, which briefly disrupted our ability to fulfil orders over the preholiday period |
| Results were challenged across our brands, including The North Face and the rest of the outdoor brands |
| After a slow start to the fall winter season, momentum remained subdued and performance was choppy throughout the quarter |
| The wholesale channel, particularly here in the U.S., is difficult in the near term, and we expect it to continue to be |
| We are seeing slowing consumer confidence and greater caution continuing in the wholesale channel |
| Timberland also sagged under the weight of the warm, high season weather and underperformed in the Americas |
| DTC, down 16%, reflected softer sell-throughs throughout the holidays, particularly outside of promotional windows in addition to weaker sell-through in cold weather and seasonal products, particularly in the outdoor segment |
| Number two, a difficult compare given the operational challenges we faced last year |
| Timberland was down 22%, driven largely by the Americans region where channel inventory and retailer caution remained a headwind and specific to the brand's assortment, boots and other seasonal product have been challenged this season |
| Vans Q3 revenue was down 29% and down across all three regions, broadly in line with half one when accounting for the intentional reset actions we took in the quarter to clean up the marketplace and reposition our wholesale channel |
| Q3 was a particularly disappointing quarter with total revenue down 17% compared to down just 4% last quarter, where the results did benefit from timing shift in deliveries |
| Like the Americas, we also experienced a more challenged sell-through on cold weather seasonal products across Europe |
| Number three, continued America's underperformance |
| Turning to the performance by brand, The North Face revenue was down 11% in the quarter |
| On a global basis, wholesale led to decline at down 28%, while DTC was down 9% |
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