The parent of the footwear brand got a jump in revenue from the popularity of classic sneakers
dystopian hits “Squid Game” Vans is promoting slip-ons.
NS South Korean The survival drama revolves around adults playing traditional Korean children’s games on a secluded island for a cash prize of around $40 million. Contestants sport all-white, slip-on sneakers, vans and green tracksuits alike.
“I would call it a small spike,” Van Parent VF Corp chief executive and president Steve Rendl told analysts on the company’s second-quarter earnings call on Friday. However, he cautioned that “this van is not an annual event.”
“It … has helped garner some media attention that we will take advantage of,” he said, noting that the company would continue to build on its connections to pop culture.
Mr Rendall said the company would focus on “things we can control” and on new products.
The Netflix show has become a global phenomenon since its premiere, reaching No. 1 in more than 90 countries, including the US. For Netflix, “Squid Game” also serves as a source of merchandise. This month the streaming giant said it is teaming up with Walmart Inc. to create a digital storefront on the retailer’s website that will offer merchandise linked to “Squid Game” and other hit shows.
Dressing like the show’s characters has become a popular costume choice.n for halloween.
|anchor||the protection||The last||Change||Change %|
While the Vans brand received a boost from the “squid game” in the latest quarter, it was still the weakest performing brand when measuring the revenue growth of those under the VF umbrella, which also included The North Face, Timberland and Dickey’s. Huh. Vans posted single-digit global revenue growth for the second quarter ended last month, while revenue growth for the other three brands was all in double digits.
Total revenue at VF increased 23% to $3.2 billion from the same quarter a year ago. Profit increased from $256.7 million to $464.1 million. According to FactSet, both revenue and adjusted earnings missed Wall Street’s consensus estimates.
According to finance chief Matt Puckett, the company saw product delays and reduced traffic in its stores during the load of Covid-19 cases on its business.
“Retailers remain excited over the upcoming holiday season, and we are focused on delivering products on time to support strong demand signals,” said Mr. Puckett.
Get Granthshala Business on the go by clicking here
The Covid-19 lockdown in VF’s major sourcing countries has led to a shortage of more manufacturing capacity in its second quarter, the company said, contributing to delays in port congestion and other logistical challenges. VF said it is accelerating freight operations as needed, and most of its supply chain is currently running.