This week presents a pivotal moment for two significant players in the fashion industry: VF Corp. and Revolve. Both companies have recently made bold portfolio changes that open the door for strategic updates as they prepare to release their latest results.

VF Corp. recently announced a surprising $1.5 billion sale of the streetwear brand Supreme to EssilorLuxottica. This decision comes as VF struggled to integrate Supreme into its broader portfolio following its acquisition in 2020. By divesting this asset, VF Corp. aims to address its pressing financial obligations, particularly a looming $1 billion in loans due by year-end. The company can now refocus its strategies on revitalizing Vans, its mainstay brand, which has seen a concerning decline in sales. The hiring of Sun Choe, a former Lululemon executive, to lead Vans signifies a fresh attempt to reinvigorate the brand.

Meanwhile, Revolve’s acquisition of the couture brand Alexandre Vauthier marks an unexpected direction for the online retailer, which is predominantly known for affordable dresses. With Vauthier’s history of luxury instability, this partnership suggests Revolve is adapting to changing consumer preferences, particularly as social media impact wanes. CEO Michael Mente has indicated a shift towards physical retail, exemplified by the recent establishment of a permanent store in Aspen following a successful pop-up. This could usher in further expansion into brick-and-mortar spaces.

As these companies unveil their strategic visions, industry watchers will be looking closely for indicators of recovery and innovation. The actions taken this week could define the landscape of fashion retail for the months to come.