VF begins roll-out of new transformation strategy Reinvent
After revenues declined by 2% year on year during the second quarter, including a 21% drop at Vans, US apparel and footwear group VF has announced new strategic transformation programme Reinvent.
Priorities include forming a global commercial structure under Martino Scabbia Guerrini, drawing upon operational successes in Asia-Pacific and EMEA (Europe, the Middle East and Africa) to set up an Americas regional platform; recruiting a new Vans brand president in place of Kevin Bailey, who will lead on Reinvent’s delivery; large-scale fixed cost reductions to the tune of $300 million; and deleveraging its balance sheet.
President and chief executive, Bracken Darrell, said that he hoped Reinvent would “improve brand-building and execution”, citing an accelerated Vans turnaround and improvements to the wider North American business as “top priorities”. VF registered revenues of $3 billion for the three months.
Progress was reported at The North Face (up 19%), but Timberland, Vans and Dickies reported respective declines of 7%, 21% and 8%. Taken together, all other brands grew by 6%.
