Tony Hawk’s Former Shoe Brand Just Did a 27% Stock Ollie… What Made Investors Skate Back?

Remember when Tony Hawk could sell anything he touched, and we all thought Vans was the coolest thing on four wheels? Well, turns out the “cool dad” shoe just pulled off a record breaking day for investors. VF Corp (whoever picked that name must’ve been in a hurry), the parent company of Vans, just posted its biggest daily stock jump ever, up 27% in one day. And no, that wasn’t because everyone suddenly decided to start skating again.

Back in the 80s and 90s, Tony Hawk and Vans were a match made in skate heaven. Hawk, the undisputed king of half-pipes, and Vans, the iconic skate shoe brand, were the duo redefining what it meant to “shred.” But after 3 decades, they decided to roll in different directions in July of 2023.

But now back to VF Corp., who has had a rough couple of years. They’ve been keeping the lights on, but that’s about it (facing consumer boredom and brand fatigue). Vans—once a beloved brand for every kid who thought they could do an ollie—was sliding fast. 

But Tuesday was a different story. The Denver-based company reported actual, honest-to-goodness profits for the first time since 2022. Investors, who’ve been throwing shade at the company for years, finally threw it some love, pushing the stock price up.

So, what’s behind the turnaround? For starters, VF Corp. did a little Marie Kondo on its brand lineup. They offloaded Supreme (yes, that Supreme) to EssilorLuxottica (another weird name) for $1.5 billion, less than the $2.1 billion VF paid to buy it back in 2021. That sale freed up enough cash for VF to tackle a pressing $1 billion loan. When you’re struggling to stay relevant, sometimes it pays to unload the hype brands.

But the real magic happened with Vans. After watching its sales plummet, Vans finally saw signs of stabilization, reporting a 15% sequential sales rise, bringing in $667 million. Sure, they’re still down 30% from two years ago, but to investors, this looked like a sign of life. It’s the kind of “not great, but not terrible” news that Wall Street eats up, especially when expectations are set as low as the Cleveland Browns playoff hopes.

With a mix of good timing, cost-cutting, and hitting the right notes with today’s youth. VF Corp managed to beat analyst expectations both on revenue and earnings. The company reported $2.76 billion in revenue for the quarter, down 6% year-over-year, but it’s actually an improvement from last quarter’s 10% drop, and it outpaced predictions of $2.7 billion. 

But don’t let the numbers fool you too much. Sales still dipped across VF’s core brands—The North Face, Timberland, and Dickies all saw red. VF’s adjusted operating margin dropped by 60 basis points to 11.4%, and EPS came in at $0.60, down from $0.63. Yet that’s still way better than the predicted $0.37. Investors didn’t expect this much resilience, so they rewarded VF like a pop quiz where the teacher gives everyone an A for just showing up.

But can VF Corp keep the momentum? In short: maybe. They’re finally finding some footing after a major stumble, but they’ve got a long climb to make. VF’s guidance for next quarter’s revenue still projects a 1%-3% year-over-year decline, but the trend is positive. They’re calling for $2.7 billion-$2.75 billion in revenue, a realistic but hopeful forecast given the year they’ve had. 

So, what’s the game plan from here? In a retail market that’s eating struggling brands for breakfast, VF has a chance if they keep the Vans spark alive and tighten their operations. If they can convince Gen Z to keep rocking those pricey Vans, VF Corp might just avoid a wipeout. (And maybe—just maybe—they’ll start to look like a brand we actually want to invest in again.)

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Stock.News has a position in VF Corp. mentioned in article.