VF Corp (NYSE: VFC) stock rose in premarket trading after reporting first-quarter results exceeding analyst expectations. The company posted an adjusted EPS loss of 24 cents, beating estimates of a 33 cents loss. Quarterly sales of $1.77 billion surpassed the consensus estimate of $1.70 billion. The company’s portfolio includes brands like Vans, The North Face, and Timberland.

Adjusted gross margin expanded by 290 basis points, reaching 54.1%. The company had cash equivalents of $642.4 million and inventories of $2.14 billion at the end of the quarter. VF Corp declared a quarterly dividend of 9 cents per share payable on September 18. CEO Bracken Darrell highlighted the company’s performance exceeding expectations.

While revenue remained flat year-over-year, VF Corp delivered a stronger bottom line. Darrell emphasized the positive momentum of The North Face and Timberland, while addressing the 14% sales decline in Vans. The company is focusing on new product sales to offset declines in iconic lines.

Darrell is prioritizing a turnaround at Vans, emphasizing growth in new product lines to counter declines in traditional products. VF Corp is on track with its transformation strategy, focusing on cost reduction, margin improvement, and organizational reshaping. The company aims to reignite growth in revenue and profitability.

VF Corp expects a second-quarter revenue decline of 4% to 2% year-over-year, with adjusted operating income projected to be between $260 million and $290 million. Despite recent gains, the stock has declined over 42% year-to-date due to ongoing turnaround efforts. VFC shares were trading higher by 15.5% premarket at $14.32.

Read more at Yahoo Finance: Vans Parent VF Corp Eyes Growth As Turnaround Gains Traction