With its shares rising almost 7% in extended trade, VF Corp. Q1 revenue for 2024 showed a smaller-than-expected decline.

The first-quarter financial result was aided by VF Corp.'s China market performance and the firms' lower inventory levels. The political instability in Bangladesh has caused some problems for VF Corp. as well as a number of international clothing stores, including Zara and H&M. Approximately 15% of its output is exported, a firm executive stated during a call for earnings. Due to the company's improved product selection and adoption of newer trends, sales in its Greater China division increased by 4% on a constant currency basis.

Since taking over as CEO in June 2023, Bracken Darrell of VF has sold the streetwear brand Supreme and made significant changes to the leadership team while developing a turnaround strategy. For the quarter that concluded on June 29, the business reported a 21% loss in sales for its Vans brands and a 2% decline for The North Face.

Analysts at Guggenheim have observed that VF Corp's strategy and business change has been strengthened by the appointment of executives like Sun Choe, who serves as global brand president for Vans, and Caroline Brown, who leads The North Face globally. According to LSEG data, its revenue decreased 8.6% to $1.91 billion from a year earlier, compared with analysts' projections of an 11.5% decline to $1.85 billion.

VF Corp posted an adjusted loss of 33 cents per share, compared with analysts' estimated loss of 37 cents per share. The company's quarterly gross margins were down 80 basis points to 52%, after declining 52.8% a year ago. Its inventories in the first quarter were down 24%, compared with the previous year.