VF Sees Vans Turnaround Progress as Altra Grows More Than 40%

Vans is still shrinking, but VF Corp. says signs of recovery are appearing in the places that matter for its next phase: direct sales, product demand and wholesale orders. The brand fell 9.8 percent in the second quarter, yet global direct-to-consumer sales turned positive for the first time in nearly five years.

That shift follows a gradual improvement that began with U.S. e-commerce, expanded to direct sales across the Americas and reached global DTC in the quarter ended Sept. 26. VF chief executive Bracken Darrell told analysts that the company’s product pipeline is now showing up in its own channels first.

A product strategy built to scale selectively

VF is testing new Vans concepts in small online batches, then moving selected products into limited runs at its own stores and with partners. Styles that find traction can reach the wider store network, followed by wholesale distribution roughly six to nine months after their DTC debut.

Darrell said the approach is producing a stronger response from wholesale partners, particularly for the third and fourth quarters. The company is refreshing familiar designs, including the Pearlized Old Skool, while adding silhouettes such as the Super Lowpro sneaker, mules and loafers. He said Vans is three months ahead of the timing previously outlined for a wholesale recovery and reaffirmed that plan.

The brand also has room to expand its reach. Darrell said Vans is less widely distributed than traditional athletic footwear at mainstream sporting goods retailers, leaving lifestyle retail as a growth opportunity. VF is encouraged by its order books, though the company’s optimism must be weighed against the brand’s continued sales decline.

Brand interest offers a counterpoint to weaker sales

Darrell pointed to consumer research as evidence that Vans retains relevance with its target audience. A Piper Jaffray teen survey placed the brand among the leading names for that group, while an AlixPartners Consumer Sentiment Index ranked it No. 2 in fashion footwear.

External signals have also been positive: Lyst ranked the Vans Premium Authentic fourth among its 10 hottest products of the third quarter and reported that demand for Vans rose 29 percent year over year. Those measures suggest consumer interest, although they don’t yet erase the gap between brand attention and sales momentum.

Altra and Timberland broaden VF’s footwear picture

Altra delivered the quarter’s strongest growth among the footwear brands discussed, rising more than 40 percent across every region and channel. Darrell credited its product pipeline and clearer storytelling, with both road and trail running advancing. Altra already leads in trail, he said, while the road-running market is 10 times larger.

The Torin 9 had the brand’s biggest launch of the season, with strong sell-through. New performance models Vanish Carbon 3 and Tempo 2 also expanded Altra’s top-tier racing range. Needham analyst Tom Nikic said Altra’s footwear growth this year is expected to fully offset declines in Vans footwear.

At Timberland, VF sees its diversification work beginning to gain traction. Darrell cited potential in sneakers and apparel beyond the brand’s core boot franchises, while cautioning that those categories won’t make a meaningful contribution to near-term results.

Analysts look for improvement in the second half

Needham’s Nikic described Vans’ uneven performance and slow recovery as another frustrating quarter, while maintaining a buy rating on VF. He expects the brand’s decline to narrow to 4 percent or less in the third quarter and approach flat performance in the fourth. That trajectory could point toward growth in fiscal 2028, though the near-term outlook remains a forecast.

Truist analyst Joseph Civello also rates VF shares a buy. He sees Vans as positioned for a wholesale rebound, citing greater visibility into spring and summer 2027 orders, shifting fashion preferences away from older athletic lifestyle styles and shelf space opened by Nike’s reduced emphasis on lifestyle products.

VF reported net income of $285.3 million for the quarter, up 50.3 percent, while revenue declined 3.8 percent to $2.7 billion. For Vans, the next test is whether rising DTC sales and partner interest translate into sustained demand across wholesale. Altra’s growth gives VF a stronger second engine as that recovery plays out.