VF's Vans weakness weighed on the company's first-quarter results, but management is banking on the brand's recovery in the second-half to power a broader turnaround.

In a call to investors Wednesday, Chief Executive Bracken Darrell said that while Vans revenue fell 9% in the first quarter due to heavier retailer de-stocking, direct-to-consumer sales are showing green shoots of recovery. Almost 60% of U.S. Vans stores are now flat-to-growing, and Darrell noted the brand is seeing notable brand heat picking up, even among luxury brands like Louis Vuitton and Dior.

"We began signaling a few quarters ago the business would turnaround first in DTC, then wholesale, and we focused on the Americas and that's exactly what continues to happen," Darrell said, noting, however, that VF needs to do a better job at stocking enough inventory of its most popular styles to meet demand.

Darrell expects performance at Vans to pick up in the latter half of the year. "Our energy strategy in our DTC channels is starting to work and we're going to keep going and build on this," Darrell said.

VF shares were down nearly 18% lower, trading at $15.05, though it was up more than 21% for the past 52 weeks.

Overall, VF has been working on a turnaround and Darrell said the company's The North Face, Timberland and Altra brands delivered another quarter of growth.

Building on the momentum of the first quarter and better visibility into the second, VF said it now expects full-year revenue to grow by at least 2% on a constant-currency basis, up from its previous target of 1% to 2%.

VF on Wednesday also said Abhishek Dalmia, currently executive vice president and chief operating officer, will take on the additional role of chief financial officer on Aug. 1. Paul Vogel, who joined the Denver company as executive vice president and finance chief in July 2024, is departing but will begin serving in an advisory capacity to assist with the transition.

VF said Vogel's departure isn't due to any dispute or disagreement with the company, adding that he will be eligible to receive severance payments and benefits.

Dalmia, 48 years old, joined VF in March 2024 and has been chief operating officer since April 2025.

For the three months ended June 30, revenue fell 5% to $1.67 billion, but by less than analysts expected.

Net loss narrowed to $97.2 million, or 25 cents a share, from a loss of $116.4 million, or 30 cents a share, in the same quarter a year ago. On an adjusted basis, loss came to 27 cents a share, wider than analyst expectations of a loss of 22 cents a share.

The company finalized the sale of the Dickies brand to Bluestar Alliance in late 2025. Excluding Dickies, revenue rose 1% compared with a year ago, or flat on a constant currency basis, which was ahead of guidance for a low-single digit percentage fall at constant currency.