The North Face Momentum Continues to Climb
Brand parent VF Corp. attributes some of The North Face’s strides, including an 83 percent increase in global revenues for the period ended June 30, to TNF’s increasing ability to drive “365-day relevancy” through its diverse offerings for both on- and off-mountain.
VFC’s current annual forecast for The North Face calls for annual revenue growth of 15-17 percent and mid-teens increase in profitability for FY22 ending next March.
Steve Rendle, VFC Chairman, President and CEO, said, “The North Face sits in that outdoor camp, which has had a lot of energy…” The ability of the TNF team to segment the brand’s offerings between On-Mountain and Off-Mountain is paying dividends, as is the brand’s decision to enter footwear.
Elsewhere at VFC:
- Vans’ sales grew 102 percent in constant currency in Q1, including 144 percent in the Americas and a 73 percent gain in digital as more consumer returned to in-person shopping.
- The company realized “sizeable (sales) increases” in two of its emerging brands in Q1, Altra and Smartwool.
- Timberland sales rose 63 percent in Q1, ahead of plan, with Outdoor, Apparel and Timberland Pro each increasing more than 75 percent. U.S. consumers, starting in the fall, will be able to return any product to a brand store to be either refurbished for resale or recycled into future products.
- VFC management remains confident that Supreme brand will hit $600 million in revenues this FY.
- The company will spend more than $35 million in incremental expedited freight charges this FY to ensure on-time product deliveries. “We’re certainly seeing some delays in the supply chain,” confirmed Puckett. “I will tell you, for us it’s generally weeks and certainly not months.” Rendle, meanwhile, thinks the company’s large brands will be in position to capture market share via its planned strategies for moving finished goods this fall.