How Wolverine, Under Armour and VF Are Progressing On Their Turnaround Plans, According to Analysts
After a rocky 2023, some major shoe brands say they are finally turning the corner.
In the last few weeks, executives from Wolverine Worldwide, Under Armour and VF Corporation said they are progressing on their respective plans — which were laid out in 2023 — meant to turn around sagging parts of their businesses.
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Here’s a look at where these three major shoe companies stand on their progress plans— and what analysts say to expect in the short and long term.
VF Corporation: An uncertain timeline
VF Corp., the parent company to Vans, The North Face, Supreme and more brands, in October laid out a strategic business transformation plan, part of which involves revitalizing the Vans brand with a new president and reviving business in the U.S.
In a call with analysts earlier this month, VF chief executive officer Bracken Darrell said that he is “energized by the progress of Vans,” though declined to provide a specific timeline for when the struggling brand would return to growth.
In a Feb. 14 note giving the company a “neutral rating,” BTIG analyst Janine Stichter said that while the company seems determined to improve, the timing on broader progress is “still a question mark.”
“We agree that much of the underperformance stems from product (an area where Mr. Darrell has historically excelled in reinvigorating) and org structure, and see a path for Vans and The North Face to return to growth,” Stichter said. “However, what remains less certain, by management’s own admission, is the timeline to improvement, especially as long lead times limit the ability to make a significant near-term impact.”
Under Armour: Progress in sight
Under Armour CEO Stephanie Linnartz said in a call with investors on Feb. 8 that the company’s strategy to revamp business — which includes growing sales in North America — was progressing. Within footwear, Under Armour is investing in a new design identity that hones in on more casual, lifestyle looks and is looking to partner with more high-end distribution partners to drive demand to this category.
According to Williams Trading analyst Sam Poser, Under Armour’s efforts are beginning to come to fruition in subtle ways.
“We are slowly beginning to see small improvements, and expect to continue to see improvements in Under Armour’s product offerings, and better defined allocation and segmentation strategies,” he wrote in a Feb. 8 note. “Those improvements, in our view, will lead to a stronger Under Armour brand, and position the company for a positive and profitable growth inflection in North America.”