V.F. (VFC) 6 Aug 242025 Q1 Earnings call transcript

Good afternoon. My name is Angela, and I will be your conference operator today. At this time, I would like to welcome everyone to the VF Corporation First Quarter Fiscal Year 2025 Earnings Call. [Operator Instructions] I will now turn the call over to Allegra Perry, Vice President, Investor Relations, to open the conference call.

You may begin.

to First welcome Conference Fiscal and Call. afternoon, VF Quarter Corporation's XXXX Good call statements. make on will Participants today's forward-looking These statements to are subject to based on current that cause expectations could actual results differ uncertainties materially. and are detailed in regularly SEC. These uncertainties documents are with filed the we referred which use our Unless basis, this call operational will constant defined afternoon they was as issued in in the believe and on be otherwise to because results represent today's we an lead accurately on numbers the discussion and noted, performance adjusted that of which amounts we've business. dollar more our press release true underlying

the may accordance financial the in release, refer with this You measures management's tables to which in Reconciliations press quantify useful all why of identify GAAP. provide which information in of investors. and GAAP are is can us excluded to supplemental hear U.S. view amounts items to included reported also adjusted and amounts, found be

Chief VF's Joining me Paul on and Financial Chief EVP Vogel. the Bracken be Officer, call President and and Darrell; Executive will Officer,

remarks, Following for questions. the call prepared we'll open our

over to hand now I'll Bracken.

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you, Paul. Thank

to both addition Sanjay Caroline as ] working that President is progress of are Vans, Monday, and excited the of joined Brown excited X that start, seeing the and of [ recent we're the from Chief see officially In Strategy leaving last North our Paul's March months and Officer job, about away now things Face. you'll later. Officer, me I'm into in of we're also I'm and Chief leading is whom Design Transformation on our

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Now for Reinvent.

steps the Remember, and track. business get on While there. growth getting Vans now is us phase the to costs, not this yet we're will U.S. debt, our back lowering back about resetting taking we're reducing

our all First, profitability, improve there's significant potential know. a as to we

target. we the $XX $XXX part a savings, During cost generated quarter, million further million in our of

by cost to deliver first guided, and We of fully we end the as P&L will year, of savings end be the year. we of by impact reflected stopping in the will have fiscal intention the actions $XXX have the half the of there. no million the executed all And

hear offset incentive areas. as inflation But savings rebuilding about. I salaries we're said we of the and And committed reinvesting by we you'll further and product beginning, are cost our building. into more back said business other are in of annual as As key that some on brand the more the before, from of absolutely areas and those to program reduction,

and continue strengthen reduce sheet. in last We inventories significant reduction relative delivered We another to debt balance year. to our

Even as our quarter ahead Inventories versus the peak down of million. selling year XX% at of the $XXX or last we were season. end build

we weeks To to net provide Supreme Additionally, We million would debt be our I plan to some is announced an Supreme sharpen down $XXX portfolio you quarter, lack strategic of said the the update I love year-over-year, with growth. Last sales for also is delever. ago. also back for team. Supreme X billion organization news. clear, our complete. supporting we But told $X.X This and and of had the you business strong review the Brand, the profitable a love I I on of core improve allows us our to leverage. focus synergies and choice rest our divestiture. us clear the It's made

Turning Americas. to the

Our platform operational. is now fully

continues forecast. XX% expected, the months the to we negative QX. near X perform We from As in to Almost have continue XX% decline now forecast quarter below as business. well our Americas important consecutive to accurate able negative be potential last of the but to softened me to term,

than excluding XX% would in QX, be last Vans. improvement. improved in reset biggest two And the inventory We with actually year, some versus Down the actions. did this reflecting similar in to regions. impact that modest of said to fourth QX we the little from quarter Moving year its XX% first an better quarter a trend

early first showing Importantly, indicators region clear while once X is several numbers quarters wholesale which in momentum right the is key headline in in the weak, time the we're head the remain with up the with encouraging positive in for again showing particularly are EMEA quarter accounts. direction. signs

space products #X our and across traction, clean, products, The Neo momentum styles franchise well are new of reset X.X also gaining Other a inventory introduce performing globally. Skate regions. our advanced As are have we introduced shoe, several across Skool to July. markets Knu launched the and regions we've more to is result and in well are performing new AVE recently the our UltraRange including continued is and which now gain actions, and

we of brand a beforehand, with and ] grassroots during brand's in music, in billing And this Paris off culture. Paris event our Fashion new summer, OTW showing in of combined with when off-the-wall had Week, of showcase around we authentic ] to buzz skate events with elevation excitement collections [ the takeover set where Saraco we our June of all started part a our with collaboration moment advanced own our a Knu As Schooler the events and we with design. potential. iconic the and Paris breadth strategy, and [ Finishing Broze just took over Van's disruptive a and depth activations art

sponsored XX [indiscernible] skateboarding at Paris the games. over have and athletes We across

always new efforts York. to across to These and Tokyo products right top and marketing gold contributing markets. today's continue with consumers this won event. featuring pushing in campaign direction we further in In our globally, skate time our to which search Google fact, just New move trends our progress and leverage are and Paris, exciting in today, in women's the resonating silver We launch athletes

was you me better demonstrating a first X%, let a Now quarter. slight improvement overview expected, give than little sequential quick QX. of versus was down Revenue which the

line across almost trend all the improvement With brands.

you in growth exclude quarter Now positive displaying business the down year. on and unprofitable in even APAC, health, both Face wholesale. brand the line It's this grew closing the basis. The growth X% opening towards XX%, strong post-COVID quarter performance fiscal regions, further. of X% was with the smallest Across up continued channels Americas and our last Note, each was up Vans. largely continues DTC that in as with nonstrategic growth quarter be strongly, we're in even skewed regionally, our standout noting with to dampening the whereas of globally a comped was ones, X if global wholesale last stores which year is DTC worth we and across and North down Vans, our

down quickly clear continued of you by Moving activities from product XX remind you, reset. in to our was line in Gross prior we in gave driven To this basis we back May. Vans guardrails down our year, the out the is margin points for with P&L. the the impact took primarily

operating to also dollars were Our XXX down SG&A a points, like note deleverage. P&L. margin detest by absolutely basis And largely our was delevering say I'd SG&A driven like to year-over-year. down I'd

are as turn. we even assured growth be all invest finished SG&A can reducing we own at not in you our So

as As share was result, per QX negative a loss $X.XX expected.

excluding at me is to all brands, the in QX, let versus year provide year. The some some overall see trend but in biggest line this Don't additional moderate. that quarter. rate me These our improvement in this to May. revenue improvement for Vans, expected should give Looking guardrails show we modest on modest will to are growth Supreme, with both QX, did comments get QX continue we you decline from ahead wrong, as last sequential not to yet, our color we're back quarter. And X and

to For Face, last to remember, XX% North slightly T&F we expect year. QX revenue be QX growth down but the in of QX had relative

gross margin. Turning to

expect last versus quality less to up year. impact the QX so this flushing improved, of reset. in there's post slightly Inventory from We Vans be has inventory

me time On SG&A, little a spend this breaking let down further.

on First, Reinvent track. are savings

have will as we well as inflation incentive indicated Second, we as before. realized compensation

We reinvest of to savings. our said also consistently XX% we'll gross XX%

combined QX into appear not in forward To and QX, just -- This, this but the some I'll to begins deleverage clear, October, have will are be further in year-over-year. expected our head a about to that is decided to end holiday we up As I more to be to it of lead of say our story. season, QX. pull cost will Expenses in appears which explain rate revenue in slightly we in of moment. higher with a that declines

guidance excludes cash This fiscal $XXX divestiture noncore year Moving into of the about deliver the to on for proceeds physical sales track the asset impact 'XX. plus of flow Supreme. of We're from free million.

end expect by at Supreme the of completed calendar point We to the some divestiture be the year.

track, and we we're with higher. leverage quarter spring. almost more we of advance ratio has of brands. Reinvent. sequentially and all first the progress Cost never advancing to are sheet QX in Finally, improved to level across the we're relative seeing the right Americas our is confidence balance addressing been moving My The new committed continue We're platform to to The sale progress. expected. strongly reduction. in the We're direction on cost savings make conclude, on

We dedicated an team incredible at have and talent leadership VF.

progress continued value the to So together, path creation and will strong, we VF. deliver make growth on at our sustainable

mark to investor To your a close, as calendars, will X-part me few VF live of in brand for broader webcast. strategy to second I've on about the And the event. well part fiscal so a plan, longer-term out value and year, hosting commercial box the be the I'm in a X dropped as hints building announce focus toward will Focused New which that return creation. and we'll or we'll our laying one let of part October Part be, York, on excited build clarify. on course, and XX end our strategies.

with -- questions. line for I'll open that the With that, now

Your Instructions] the line comes of Roach Goldman [Operator with first Brooke question from Sachs.

additional I hoping was for color permanent forward brand now the could you you place. brand have your going provide on that Vans plans president in a

a maybe innovation, early changes types to terms a shoots forward elaborate SG&A more regarding of the in And like for little in quarters? bit the Can marketing you pulling green seeing of what next that couple you're that path the look talked bit in some of marketing? both little the of the expect any about You for couple new brand you on brand you're quarters, scaling, next brands.

you has a of chance cascade you'll expect quarter save for I when end to the marketing But of to on the it. more to is I'll of see the a little next sun directly I launches. you're speak year to a turned think. for what of or product bit that get And just the which time same. I'll course, the tied give campaign asking, Yes, by a Vans, We we of X. new

got well. our the in franchises, X new we've my in the I remarks, think, doing I opening are As are of in franchises now mentioned top X. And the -- opening new

Knu and #X, Skool, UltraRange is one's So [indiscernible] #X.

how they're it new I responsive you products right. to shows just think are we when

we And come so you're going the to through see year. as more products new

new several launch will this just month. We styles

Of in far year. course, we've they're not so incorporated this what done

just down when that, of Paris it's see moving which that introduced We always of now our as completely we've that more we pushing to revamped time top we goes everything had we you'll mentioned started do. And right marketing. event And campaign, On our approach June. in in and more on. through that

grassroots campaign is Our influencer is our underway, campaign. well as

have may wearing caught celebrities Vans seen You a recently. just few

you Google you'll it, it. If see

just go the that through energy and is more you you're year. see more to from super of of as the we going and kind I'm excited Vans, So need it. This about

line of comes Binetti Michael Evercore. question next the with Your from

maybe trend the help skate like quarter. U.S. ex women's spoiler trends that. the real-time nice wholesale side? And Bracken, diverging thanks now speak it important in Congrats Face off, right to with good North into issue. for direct-to-consumer appreciate you global on the you How with the North at currency? what's here was the for we you today's the first that Can as on BXC? us forward Could sounds on wholesale get brand medals. I the back X% up wholesale expect to space trends roll season just holding then

Yes.

such still side. But would good Yes. we it, spoil our spoilers be it's did all, of good you. on apologize news. that if news It First cross didn't I to mind our

see continue you mainly I it. And think, the can traffic you're numbers super side, the we TNF, DTC continues both world gig and some growth driven reality solid up the you is on the underlying which Wholesale by is extent, have conservatism, to to So strong, U.S. to. retail both into and the on weak, on to in exciting. just relatively good China and around be is

of last it I environment think the of couple it's probably was skittishness the because One a function a during also things. bit so holiday season. little year overall a weather when and of the of warm just is macro

about tuned. really TNF feel the about forward, coming. brand. going are that we're good feel really say product initiatives good but I'd I And not guiding stay the I So

I going be think to just TNF fine.

from items question next of Your Citigroup. the with line Paul Lejuez

talk what Curious in you or are brand better within about capital now? flow for working what getting guidance or any thinking have it's into or on and flow you you're might might previously factor guidance free that assumptions free versus assuming cash changed now on cash worse level, that your you a were you changes within that can that what geographic channel reiterated, anything looking

Yes. I'm happy say changes. any there aren't to

change is So on terms but quarter. same be, loaded. as our which only pretty pull think, may dynamics it was you underlying the course, will realize may of at real overall, handle are the say, very last it's in will The good better point, this our much some back-end a reflection, on we I forecasting. And I'd Supreme a of is it's out, as or not getting

a year. be So end most come back change. other won't into would there But of the the big the that, than of cash

that? quantify you Can

the released We released the -- filing. Yeah. we a and I think P&L

it and million about year, $XXX last was XX% So OI.

You looks like. It's that's be about of this than going kind what assume can that year. to the higher cash

And the So yet, year, sure think guidance say, but the cash of XXX. this will we're half than the we'll rest But not cross through will year, more it XXX the that. for whenever it's but be half let's around close overall it cash. reset our out, when then will pull and closes, probably, of course, the way of

next of from Your question comes the with Duffy Stifel. Jim line

clarification Just a to start question.

asset sale, Supreme the with you potentially there Or the as cleanup? done are appropriate? With sales additional contemplated portfolio are

contemplated, we're We ever think I terms but our of anything reviewing in don't done really have don't specific portfolio.

specific review, portfolio a at on So we've recycle plans basis. a probably now. regular basis, now. certainly will we least no on on finished recycle for We'll regular our but that There's

to on will we tuned expect to pay there Investor on, stay generation decide good to sense promised. The debt of And be the Day divest the down. will we that you a future. a in how come give strong that. something I'd for puts off say good else October X next from tranches us it about unless cash This good we a And in position as debt

Is To savings point use additional specific a to cost emphasis? of curious. you I'm Or you've savings? identified that are philosophical scope? cost in speaking

not It is on...

well. as October in That

we because that point. cost did. Yes. asking else ready bring not that, We're will spent with X We're going consultant good October. for yet. about to service it Thank scoping nobody savings. months that up. last an the with a to program. question additional really we in you anything actually and We working on external philosophical I It is But was about not our really talk feel

of JPMorgan. Matthew from And your line next the Instructions] [Operator with question Boss comes

Great.

Second, about think larger we as you management Bracken, any priorities out I line you on top feel the know today? fill maybe So you're debt pay first do the on Maybe team, the that priorities? any stand and down last, laid maybe but you looking helm, it you a see where from today at picture, cited your how growth organic that to year to cash visibility do key free initially? to as improvement, return then And flow here? you sequential roles just about first,

So you, the first priorities think famous full like many I not times I my call. that those probably to said but told like X I I won't that repeat so you feel I famous in X they feel are --

through and could won't think are a months, great. a but And I team, I the is the on now. have half asked So floor, is team. for. I of We're it's about everybody really got half the last feel new go not. it's you terrific of team, them an team all in a those, are I all-star them I those. we've referenced And of really everybody on management From kind of summary mean

Now team. make we sure it's a as well that my to together work job

to on really be we're going that. So working

a about I'm Vans you turn be I tell happening? in turn give business, the the on of when will and I terms ready in the -- going talk the general today, we'll number to In that. not to October, but you do it forecast turn

where it. I to can and feel feel good the good feels making. we're feel about progress So It and I see I I when was very was like about I company, very my last it, similar in I

you paydown, October of debt when that terms that expect can about the down. come to certainly In we'll talk leverage in

of Best Great. luck.

BNP. of Your line Vasilescu from next question Laurent comes with the

decision much, she to But join brings you to ask you you. for maybe, the leave -- talk to [ to revenues flow any are disruptions Bangladesh, Brown Bracken, seeing wanted about can't might Sea ] XQ TNF? [ Paul about to then about great onboarding the Wu into hear Red Sansa's I from XQ? say Caroline table. or where but What ] And from can

the Let one me first. last take

Red challenge there as I stable now much for think, So there. Sea, and pretty as much is challenge otherwise are activity humanitarian the

Our place. well in workarounds are

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the than the there certainly impairment kind be if is today, if So is anything to worse it end world. of stay it's not way of it were it happened the any And today. long-term wouldn't

phenomenal having and We've And in Face. the lobby am. she North people as Timberland incredible on now walked her career She I background. apparel. mean in the started for she got are immediately, door. meetings She Caroline, passion She at knows -- spent for great just about fashion the and I'm this On Caroline's just in excited really all showed tense she's a an she has least a super business, in eye leader. I up whole luxury. the over

have really So to is excited her. she

we're what example, lot point that we're moving that realized, we're we super you some disclosing. not have for we're of something a now, And are of that out, lot here. a doing fast Laurent, would right doing, tell not doing, can't you I may now what but right I

know we Sun know you quarter, ], the point big My didn't Caroline, So not [ you time for happening is all not just people I'm didn't got changes suggesting last didn't our portfolio point about to this is about And know changes, got that going you pace and activities are up. we've now at let the about Supreme. coming. example,

Bob Your with Guggenheim. of next question comes Drbul from the line

I like the to Bracken. I'd little is what question China on you just brand China Paul. about and by guess happening? maybe Can focus talk is Welcome, the there a more believe bit, seeing what's just you're for outlook in you how

today, Sure. Look, at bit, the for it's just Caroline still the our overall -- brands. end for of we of talking the opportunity fantastic for day, been such major big slowed Face, I the and a think a it all great a mean China, But were is market a North just it's us, And down I in as for general, market. I not story has this VF. all little know.

I is the think of the story story very brand in around world. story China each a much

of only boy, they're a what were it's we're changing see in China stores, really in think China. a Vans you they're you stores, we're of closing lot fast. doing partner we're not there. can It's in incredible turnaround. really a speed opening amount at company-owned you an Vans if happening we're Vans So mean stores, do globally, lot should stores. doing And but I what churn,

extremely do to continues Face North know. there, as you well The

year ago. You in we're in By the can numbers the way, some indexing today. see very a numbers again strong

is is in powerful. today really a really, And Timberland work number that So process.

interesting an ever. is Timberland in brand think I

opportunity. not of Timberland. world, every which at I challenges think now, a it is one But So Timberland, part the least that the in not focused for different on discussions. of -- I'm lies to excited there's in that little about it's but these for we're the

Sole comes question next Your Jay with UBS. of line the from

wanted just you up ask I Dickies yet. hasn't come to about

margin. elaborate What's get healthy If you back a to expect you're could healthy plan there? what do you that the How little to seeing growth it brand? on bit with and

to the And kind Sure. pure We Dickies of here fashion core U.S. outside make to a it's U.S., fine. the refocused fast our now. and work the the we to business, completely U.S., into because brand of then two In too really doing turn we is in our lost it really continues pure in to it outside of try U.S., that struggled it do actions. a really the moved story fashion footing there pushed it's we're

say more there. come to I'd So

and footing. time. I think great a its Dickies really get It a it brand, strong, business, take and we'll a will little just on is solid back good, a fantastic brand

Your question next Seaport line from the Mitch of comes Research Kummetz with Partners.

hoping performing Bracken, a you provide in improvement the how real-time could some it's And more Vans, that of selling? quarter. I Is more second maybe mentioned the was function back-to-school. little you challenging for modest about a Can really talk bit color on you sellout?

Yes.

nobody has is I a think which the down sellout but be the right ago, versus continued year likes, to trend in the direction overall.

And so main I thing. that's the guess

expectation of too to you kind for back-to-school. give us little any a early it's so for And

marketing month call good great could. -- this Vans. just we few on feel and had later, later, But we'll see. I the if certainly just about progress we're feel weeks a initiatives. making You product the we a I about

see improvement. We progress do. said I want And the of year. just stay I'd slight we improvement, Vans tuned. to sequential the kind the that's on through way sequential So expect say We all

Your next TD the from question with Kernan of comes line John Cowen.

on Congrats changes you all can the positive make.

Now to terms is one Vans of And a point? rightsize think on wholesale anything Obviously, in for do more going back coming the to are the you category distribution, opportunities do some have from level? it say What in to a at this lot go Vans biggest there be in time. whether to to is just Vans months. or DTC

question your I'll first. all, answer Well, first second of

really rightsizing are our distribution. We

we wholesale, and We're So talking the and wholesale not on quite value And about in the we're time. Europe in a and doing DTC a real happening both that's bit it. pulling are lot back U.S. channel

And a in big the a about stores China in in are. of stores, and closing I talk said, about you we to little make it, We're closing So deal also, we're going bit Europe, in not and me heard churn U.S. but too. as stores the

lot just mean, fantastic know We a how me in say always brand. happened. activity of lost styles. see time I same compelled lost so probably rotate will And be kind needed there's of the almost them. the of before, biggest styles that drove the is can over-rotated And And there. the And I far say marketplace. a a couple we mentality energy. them just of now overall, that them heard by of So [indiscernible]. on and any but way. What's couple everybody kind it you too you you've culture We -- just the I it over think over-rotated to buy that I'd could But too again. it popular, point. got of opportunity the Vans them a overdo a I really energy, Vans? And who with picked really on say up run feel this into at the much

I'm was And wearing with been never boy, [indiscernible]. like done there's them. there people a I Vans. see -- still anymore. -- Vans Fact, don't you just It's In

are innovating franchise putting also we're what and in So So we're doing? management. we

bringing So out new innovating by styles.

then quarter. see you've seen key Skool, X.X, a collaborations Knu styles to energy. at come starting new some this So more to AVE them a one have give we'll -- coming And and you're time X really now,

This gas And then for to at key styles then innovation, very then model brand. the top take redose some when a the is of franchise older management think while footwear with we first of culture is you're going flow XXX really the where down. see and them and them us franchise management, of out for growing which the chain the plus I a influencers

mean opportunity, same a think know important On but that's we're ] businesses only in I [ apparel. there most I And of top of feels do Sun do about big I that, the I And it's opportunity. that. our not near-term is fabulous. is XX% way the

think So I there's opportunity lots Vans. of on

next Your the from comes of Adrienne Barclays. question Yih line with

to Paul. meeting you, forward Looking

So a more a, Bracken, my is going question philosophical first one. I be guess, of to

then numbers going numbers. months, think you where that's months sounds least I turning guidance? we on So I'm and at you're results, you plan a plan today's quarterly we're Martino to some or Can to last high based speak confident now making get X-parter about assuming typically had you're confident the consecutive talked months X on get the like had an portfolio. on at that, call, long-range of X Analyst consecutive all-time Day, it across into the said

then Can to help imagine is us you're on for on of vendor And some that a clean not quarter. gross you having concessions. Inventories second the margin. lot so would delivering resort or of to give I shaping margins? question the gross second consecutive my not the are

the should margin in So we to back the half? gross improve start see wholesale meaningfully

comment first. margin to do years. the gross I'll pretty the the of had margins do -- Yes. We said, the we if from And I half to into improve as hold, come it over expect a expectation. last gross you we promotion especially. through year, margin couple year. off should gross all answer headwind start things as of our And back the go big that's

an in absolute are the right P&L the So Paul I'm this. and and optimistic. always looking table important I'm me, he's at for To across We will -- I'm the gross smiling zelig margin real too. both now number most be

gross to on we're fixated really going be margin. So

given something we to. of we'll can't a intermediate fun we're up in we've promise head give consistent the where don't happen, the want see certainly you to do more look a really trying We when we're get I spoil quarter how past, than we kind every you when in over to can we'll formula you game with going now. that to and I I guidance But going plan. and something you to that, to to term, improve will but what's guidance, with our our to lack the have time. for of give And exactly October, this. talk it more about we come expect

So neck because she's more without will [indiscernible] saying the elbow any me that close. out right there. [indiscernible] in

very you much. Very helpful. Thank

the Your of next line with Securities. Wedbush question Tom Nikic comes from

Thanks looking for taking and to my forward question market [indiscernible].

a You're little quiet.

you -- me it can on sorry, follow-up To hear now? about

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on question Vans. another ask to want I Okay.

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going X I'm guess not looking a to my feel of change although But the into X sure lies is the maybe kind you're free on today them you'd in brands, their in specifics, all like. order go growth across and if perspective rate confidence I where across would rank be, your at where the question greatest first that rates where of were that of of complement brands? quarter, portfolio from terms

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of question Capital next the from Your BMO line Siegel Simeon with comes Markets.

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hear the on Could Nice thoughts margin. the pressure beat to on -- any gross So I'm just willing from Face And ASP goes a ASP to of point in you'd and that little -- elaborate bps you your the Maybe then Could mix. unfavorable and maybe units job bit about margin how question nice XX quarter? by that where in on job same it. glad versus margin gross on you share be about -- mentioned looks gross just color composition inventory, the that North from for on past the here? to Vans brand. you

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question BTIG. Janine the next Stichter comes Your of with line from

Vans. Two quick on ones

things to upon products different different the wrong on having you're First, one that? back where the kind that there have of retailers. segmentation like on more for thinking was about tiering the could Is last how against years, brand it X been you're felt when how of segmentation any improved executing update over and we think or went

track one there second the ability general, know footwear product? about on times of then then is talked in And fast lead terms anything are you've in I and just particularly frustrating Vans, changing in long lead times. just your for to

the time area fundamental put to The until but But try call, I can't really is and here pressure think for second that of there. we market really lead in to one upside business we'll parking I do times an as no. move we first. earlier time, focus beginning. general an overall do answer faster, I big I in think in I things on model. the certainly while on think in then business opportunity. little But aspect a the the that a think I'm is there's do lead worry the and one about we said get been little place, answer I'll It's not a

about just thing we channels. distributed On the I we've is think into is, segmentation key I over of got think talked retailers, the yes, value

and dividends. back think pay we've Europe, going in so back U.S., I the we're pulled And to in pulling that's

from comes question Group. of with Telsey Telsey next Dana You Advisory the line

look at stores about DTC you Vans. Vans, as on you brand how expansion by we different it's which closing and DTC business, brands? retail the at should look was overseas? thinking As wholesale How the fervent And color you're talked excluding in any other -- with mentioned think had channel any domestically versus just or and quarter, some about the about the the you you line How DTC channel, on fourth digital? more

people footfall just worse in exclusive world a traffic had or not better to Retail e-tail. versus expected, it's over I'd us, it's weak. little whether on Yes, malls, think the the western digital. in to retail say you think continues of generally I I just the be -- all malls bit than in out

I'm brand, get that the wholesale On down two not by I'd sure much. too business and break into

to notable out across I but make think difference I board. not some variation too the -- deal enough yes, a mean I probably big there's guess of. wouldn't I there's probably say the much

you. Thank

Thank you.

Sorry, more Dana. wasn't helpful it

comes question last of with Baird. Jonathan line Your from Komp the

Europe on DTC. I bit the in the improvement down are little a Vans. a just that up break of drivers it EMEA in question follow like of still Could to region, you at want challenging more seeing the you're sounds given one more maybe sell-throughs

you So going dynamics what on just a do to more first think improvement? drove on? there And different that positive for the sequential a are could Vans? region flip color Or that's

is -- Wholesale I I it Yes. that in that's really is to say than because speaking, than in wholesale. have opportunity the think stronger it Americas, was except lot about is too a And of I have Europe wholesale course. in said don't mean we bigger relatively we of much as earlier. DTC,

see but So I'm kind I of think what first. also optimistic I have it. at in have I'm happens. -- EMEA, general, been least call about I might turning implied We'll optimistic at you that But point earlier in said, an as

it optimistic will more -- and If EMEA optimistic you I'm component. ask me partly what turn that the might first. that because first I'm of region somewhat be wholesale

Okay, great. Thank you.

been much. really the Well, Thank think last you Great. question, guess all. I for wasn't? with quarter lot of us a that's changes. exciting thank you I'll It's just a I -- so

more to here to than name and say I wait I expect that Paul both let his don't in up. and to or see Can't birthday. all get of As you said, October just will

So people more And on I'll too. us. a few he's have excited, with

see going I really to we'll get all. this finish exciting to can't you the and wait think meeting be quarter. now to a So is second And back

So thanks a lot.

session. you concludes today's Thank That for joining. all

may You disconnect. now