If the economy turns around, do you anticipate any VF layoffs? Any chatter, news or rumors?
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Word is that best use of current Vans/North Face DC is for case-lot shipping and maybe product returns. Relatively new DC (5 years + or -) but footprint too small & racking too limited for e-commerce so doomed from the start. With shareholders in an activist mindset & with more stock devaluations/dividend decreases imminent, Dorer probably has already made a short list of 3PL providers to take over the e-commerce end since there are plenty in the area and none show the operating inefficiencies and ineptitude of VFC. Regardless of the state of the economy, Dorer has to staunch the hemorrhaging of cash, and with billion dollar credit draw-downs and multi-billion dollar acquisitions to pay off, VFC is in no position to divest itself of brands unless it's at a huge discount. So you can bet your sweet bippy the workers will pay via layoffs & other limitations for the sins of VFC management. I expect VFC common stock to test a sub-teen floor by end of first quarter 2023. Strap in -- it's gonna get ugly.
GM of Vans/North Face dist center resigns then CEO does the same. Company employees report being forced to work 60-hr weeks thru Dec along with large pool of new contingent workers = higher operating expenses. No big deal in e-commerce this time of year, but at same time workers report insufficient work, decreases in shipped orders/day despite a growing backlog of orders (so demand not an issue yet), and no offers to employees to take voluntary time off or to cut back overtime. You don't need a Harvard MBA to see fundamental issues here, and if you have a pulse you know e-commerce is done well by most in the space. Where will a prime season fail leave VFC? Stay tuned.