Vans Global Brand President Steps Down

Vans Global Brand President Kevin Bailey has stepped down as VF Corp. begins a new strategy to help transform its business.

Bailey first joined Vans in 2002 and returned to the brand last year after taking on roles within the parent organization, VF Corporation. Bailey will continue to contribute to VF’s strategic direction as a member of the executive leadership team, under the supervision of CEO and President Bracken Darrell, who joined the company’s leadership ranks in June.

With the subpar performance of Vans shoes as of late, “Bailey will help lead a new business transformation program, ‘Reinvent,’ outlined by the company on Monday, that aims to ‘enhance focus on brand-building and to improve operating performance,’ according to a release.”

Bailey will play a pivotal role in this plan, which aims to amplify the company’s brand-building efforts and enhance operational performance, as per the announcement. This initiative forms a crucial part of their strategy to breathe new life into Vans — a brand currently witnessing a slump — under the leadership of a new president.

According to VR Corporation’s press release, Vans’ recent financial report revealed how the company’s revenue for Q2’FY24 dipped by 2% (or 4% when adjusted for constant currency conditions), landing at $3 billion. The firm registered a per-share loss of $1.16, a stark contrast to the Q2’FY23 figure of $0.31 — a situation exacerbated by an additional tax expense resulting from the conclusion of the Timberland tax lawsuit. However, when it comes to adjusted earnings per share, the company declared $0.63, showing a mild decrease from Q2’FY23’s $0.73.

“In my first 100 days, as I have spent time with our brands, teams, and customers around the world, I have developed even stronger conviction in the company’s significant potential, which is far greater than what we are delivering today. Our transformation plan, Reinvent, will improve our brand-building and execution while addressing with urgency our top priorities of improving North America, accelerating the Vans turnaround, significantly reducing our fixed costs and reducing leverage. We are excited about the long term, starting with these first major steps toward improving our near-term performance, positioning us to return to growth and generate shareholder value.”

Bracken Darrell, President and CEO via VR Corporation Press Release

Vans Operation ‘Reinvent’ Is Underway

This program centers around five core priorities: replacing the global brand president, ameliorating North America’s results, catalyzing a turnaround for the Vans brand, cutting costs, and fortifying the balance sheet.

As part of the Reinvent initiative, the company is reshaping its operating model. This change includes the inception of a global commercial structure, comprising an Americas regional platform. This construction mirrors the company’s prosperous operations in the EMEA and APAC regions. Consequently, Martino Scabbia Guerrini has been elevated to the newly minted role of chief commercial officer, tasked with steering global go-to-market strategy.

In a bid to spur sustainable growth, the transformed operating model expects brand presidents, particularly for the Vans brand, to show more robust leadership in facets like long-term brand-building, product innovation, and growth strategies.

Simultaneously, the company is also launching a comprehensive cost-reduction scheme. This program is slated to yield $300 million in fixed cost savings, principally by curbing spending in non-strategic business areas and streamlining the company’s structure.

Additionally, efforts are afoot to trim down the company’s debt and leverage as part of its commitment to strengthen its balance sheet. A reduction in the dividend is a decisive first step toward this goal, solidifying the company’s commitment to improving financial health and operating performance.