“Weak.”
Things are just not going the best, right now, for
Vans. Eight-ish years ago, the iconic waffle-soled
surf-infused classic was riding impossibly high. On the feet of
every tween to twenty-something, sleek and cool, title sponsor of
the Triple Crown, no cloud in sight. Then came “the big crash.”
tween to twenty-somethings opting for a different silhouette, the
World Surf League taking a hammer to North Shore competitive
surfing, downturn, downturn, downturn.
As the United States economy rebounded, those sitting in the
corner offices of Vans parent VF Corporation might have thought
their luck was going to turn back good.
Then came the fateful decision to not
invite Jamie O’Brien to the upcoming Pipe Masters.
Notables such as Josh Moniz lowered their aim and blasted “Vans
has nearly ruined what it means to be a Pipeline Master. The way
this event has been handled in recent years, since Vans bought the
rights to it, feels disrespectful to one of the most iconic waves
and events in the history of surfing—right here at OUR home in
Hawaii.”
Less notables in the comments piled on, excoriating various
“kooks” and “barneys” at Vans who had lost their way.
Worse than being called names by surfers both high and low,
though, was being described as “garbage” by than Standard and Poor.
Those who dabble in the financial markets are keenly aware of
S&P and its rating system. Stocks are rated from AAA to D. VF
Corp. was once sitting at a lofty BBB but just got downgraded to
BB, officially a “junk stock.”
According to the economic geniuses, Vans was largely to
blame.
“Vans declined 11% in the second quarter of fiscal 2025, after
declining over 20% in each of the last five quarters, and in the
teens for the past three quarters of fiscal 2023,” according to
S&P. “The sharper declines in fiscal 2024 include
an inventory realignment and strategic decision to take inventory
out of the wholesale channel to make space for newer products,
given excess inventory levels and products not resonating with
consumers in a weaker demand environment. The weak demand and
inventory misalignment led to significant deterioration of (VF’s)
operating results and credit metrics.”
Not stated, but clearly implied, was the aforementioned JOB’s
lack of Pipe Masters invite.
Dark days.
