On the back of closing 140 stores: Vans undergoes transformation

As part of its Q1 earnings release, VF Corp announced major changes for Vans, on the back of reporting a 14 percent decline in revenue for the footwear brand. Despite this, president, CEO and director of the clothing conglomerate, Bracken Darrell, remained optimistic in VF’s earnings call with investors, stating “we’re seeing some bright spots”.

Efforts to turnaround the business have already long been in place, with VF opting to close around 140 Vans stores – representing 20 percent of its global network – over the last two years. According to Darrell, despite impacting revenue, such a decision has helped improve profitability.

The company has also reorientated about 90 percent of its full-priced Americas stores “to provide greater gender clarity”. VF is planning to continue a wider refresh of Vans’ store network, rolling out renewed, footwear-focused concepts as part of a retail playbook. This is already present in Vans’ Fifth Avenue and London stores, where performance is reportedly higher in comparison to other locations. In EMEA, meanwhile, the brand’s key city strategy, designed to elevate merchandising, is “generating exciting early results”, Darrell noted.

Luxury reckoning is beacon of hope

Changes are also to come within wholesale, on the back of skate-inspired silhouettes garnering luxury interest at fashion weeks this year. Darrell said this was reflected in a 50 percent increase in appointment bookings at the June edition of Paris Fashion Week, with new and returning accounts among those showing interest. “I'm not suggesting that Vans will be growing at 9 percent a year from now, but I am excited to see the tide turning on skate-style shoes in luxury, where trends start,” he added.

In order to target this evolving market, Vans has made changes to its supply chain and is beginning to accelerate its pace to market, as well as increasing the supply and variety of new products. Next to its premium line, this will also address “encouraging” responses seen towards its classics collection, The Authentic, contributing to VF’s goal to improve channel mix and set the brand up for sustained and profitable growth.

Vans is currently being run by brand president Sun Choe, who joined the company early 2024 and has been tasked with executing the turnaround strategy. Darrell noted: “This team's freedom to innovate will be less and less constrained by the practicalities of the old product creation process as each quarter passes.”

In addressing concerns over Vans’ performance, Darrell commented: “We'll get Vans back to flat and then to healthy growth as fast as we can. There are some out there who think this will never happen. I sort of love having that point of view out there. I get it and it's our job to show you how wrong that point of view is.”