Top Calls: Piper Sandler's Call on Footwear

The video discusses the downgrade of VF Corp due to challenges with the Vans brand, including over-inventory and weak sell-through. Skechers, on the other hand, is experiencing strong growth driven by new products and international markets, particularly in China. Despite tempered expectations, Skechers is optimistic about growth in China. VF Corp's other brands like The North Face and Ultra are performing well, while Timberland and Dickies show some weakness.

What was the primary reason for VF Corp's downgrade of the Vans brand?

• Over-inventory and tight open-to-buy situations

• Strong direct-to-consumer trends

• Successful new product launches

• High international growth

What is a key factor contributing to Skechers' strong performance?

• Limited international presence

• Focus on core classics

• Strong direct-to-consumer trends

• Dependence on the US market

How has Skechers approached the recovery in China?

• Expecting a rapid recovery

• Ignoring the Chinese market

• Baking a conservative view into guidance

• Focusing solely on the US market

Which brand under VF Corp has shown strong growth despite Vans' struggles?

• N Brace

• The North Face

• Timberland

• Dickies

What is a potential upside for VF Corp's portfolio?

• Weakness in Timberland

• Growth in the Ultra brand

• Challenges in the Vans brand

• Decline in The North Face