Nearly 100 jobs are being cut at a major UK footwear and apparel retailer following a significant downturn in sales, the company has confirmed.
Financial Performance in Sharp Decline
VF Northern Europe Limited, the entity overseeing brands including The North Face, Vans, Timberland, Eastpak, Kipling, and Napapijri, reported a steep drop in revenue. Turnover fell by 10% to £321.5 million for the 12 months ending March 2025. This follows an 11% decline in the previous financial year, marking a stark contrast to the £401.7 million turnover achieved in 2022/23.
The company directly attributed the fall to changing consumer habits, stating it was “due to a decrease in sales to customers who are reducing their spend on new clothes and footwear.” This trend was notably evident in the crucial pre-Christmas trading period.
Profitability and Strategic Shifts
The sales slump has severely impacted the bottom line. Operating profit more than halved, dropping to £8.5 million from £14.9 million. Profit before tax fell to £9.8 million from £15.5 million, resulting in a net profit of just £7.37 million for the year, down from £13.69 million.
In response, the firm has outlined a renewed strategy centred on growth. “Sales growth is the primary objective of the company,” a statement read. The plan involves increased investment in training for customer-facing roles and a focus on product innovation. Furthermore, the company intends to boost sales by investing in more owned or franchised retail activities.
Broader Corporate Context
The job cuts and UK sales decline occur amidst wider restructuring for the US-based parent company, VF Corporation. In a move to streamline its portfolio and reduce debt, the group sold its Dickies workwear brand to Bluestar Alliance for $600 million in November last year.
There are some brighter spots in recent global reporting. For the second quarter of the 2026 financial year, VF Corporation reported a 2% rise in group revenue to $2.8 billion and achieved a 21% reduction in net debt compared to the same period last year. However, the challenges facing its Northern European operations have necessitated the significant job reductions announced.
