• by Sarah Mahoney  @mahoney_sarah, August 2, 2023

Both Columbia Sportswear and the North Face report healthy global sales increases, despite U.S. consumers' widespread pullbacks in discretionary spending. But bigger problems at VF Corp., the North Face's owner, reveal troubling trends. Sales at its Vans division continued to tumble, and its workwear is also struggling.

The Denver-based VF reports that revenue declined 8% in the first quarter of its fiscal year, dropping to $2.1 billion. And losses grew to $57.4 million, up from a loss of $56 million in the same period a year ago.

The North Face again emerged as the star performer, with sales increasing 12% to $538 million. But revenues dropped 22% at Vans, with even steeper declines in the U.S. Sales also declined at Timberland, down 6%, and Dickie's workwear, falling 20%.

Some expect the North Face’s gains to continue. "We believe the North Face will benefit from product innovations, brand extensions and expansions of its direct-to-consumer business," writes David Swartz, an analyst who covers VF for Morningstar.

He thinks the company could achieve its target of high-single- to low-double-digit sales growth for the brand through fiscal 2027, especially given its double-digit gains of the last two years.

Those gains come as America’s interest in outdoor recreation, which started even before the pandemic, continues to set new records. The Outdoor Industry says 55% of people 6 and older participated in some outdoor activity in 2022, or about 168.1 million people. That’s a 2.8% increase from 2021 and the eighth straight year of growth.

Swartz is less optimistic, however, about long-term growth goals for Timberland and Dickies. And he doubts either Dickie's or Vans will regain positive growth this calendar year.

Longer term, he is hopeful about the ongoing turnaround efforts at Vans. Part of that is the continued transition from its male skateboarder roots to an audience that is 60% female and more interested in music and culture than action sports.

Results from Columbia Sportswear also demonstrate strong consumer interest in getting outdoors, despite softer demand in the U.S. Net sales climbed 7% to $620.9 million in the second quarter, a record, buoyed by sales of its expanded sun-protection and cooling technologies with the launch of Omni-Shade Broad Spectrum.

Net income rose to $8.4 million, compared to $7.2 million in the prior year's comparable period.

But it lowered its forecast for the full year "navigate near-term uncertainty," citing slowing trends.

Separately, the Oregon-based company hired Tricia L. Shumavon as president of prAna, its yoga apparel line. She joins the company from Adidas and has also worked at Nike, the Gap and L Brands.