In the first quarter of fiscal year 2025, VF Corporation reported significant challenges, with revenues totaling $1.91 billion, a decline of 34.68% year-over-year (YoY) but flat quarter-over-quarter (QoQ). The company’s gross profit also reflected negative trends, dropping to $1.91 billion, which translated to a troubling gross profit margin of 100%, indicating significant operational and strategic hurdles. Despite these setbacks, the net income saw a minor increase of 12.99% QoQ, settling at a loss of $297.5 million, highlighting the company's ongoing difficulties in restoring profitability.
Management indicated that these results stemmed from ongoing shifts in consumer preference and supply chain challenges, which have heavily impacted the overall apparel retail market. The shift towards direct-to-consumer (DTC) channels is a cornerstone of VF’s strategy as they aim to regain traction and stabilize their financial performance in the coming quarters.