The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Vans owner VF Corp said on Thursday it has laid off about 500 employees as it aims to restructure its business and improve operations globally.
The company has been struggling to survive a tough US retail environment in which customers have been cutting back on non-essential spending.
It had in October come under pressure from activist investor firms Legion Partners Asset Management and Engaged Capital, which insisted on cost cuts and a halt to acquisitions.
Sales at its Vans brand have been dropping for the last few quarters, with the new CEO Bracken Darrell recently saying that it would not see a turnaround this year.
ADVERTISEMENT
He had also warned of a large-scale cost reduction program to rebuild its business.
The job cuts took place across all its brands, corporate functions and geographies. VF had about 33,000 employees as of April 1, according to a regulatory filing.
Its stock, which has lost 40 percent of its value so far this year, was trading flat after the bell.
By Annett Mary Manoj and Kate Masters
Learn more:
What Is VF Corp.’s Plan for Vans and Its Other Struggling Brands?
Activist investors are demanding big changes at the fashion conglomerate, which also owns The North Face, Supreme, Timberland and other brands. The company will have a chance to lay out its own vision when it releases earnings this week.
As the German sportswear giant taps surging demand for its Samba and Gazelle sneakers, it’s also taking steps to spread its bets ahead of peak interest.
A profitable, multi-trillion dollar fashion industry populated with brands that generate minimal economic and environmental waste is within our reach, argues Lawrence Lenihan.
RFID technology has made self-checkout far more efficient than traditional scanning kiosks at retailers like Zara and Uniqlo, but the industry at large hesitates to fully embrace the innovation over concerns of theft and customer engagement.
The company has continued to struggle with growing “at scale” and issued a warning in February that revenue may not start increasing again until the fourth quarter.