(Reuters) - Shares of Vans maker VF Corp ( VFC ) surged 22% in premarket trading on Tuesday after turning a profit following two quarters of losses, prompting investors to bet on a faster-than-expected turnaround at the struggling apparel and footwear maker.

The company is in midst of a business revamp under CEO Bracken Darrell that involves focusing on its mainstay Vans business and saving about $300 million in costs by the end of fiscal 2025. VF Corp ( VFC ) is also selling non-core businesses, including its streetwear brand Supreme.

This plan showed signs of progress in the second quarter as sales of the Vans business declined just 11%, compared to a 21% fall in the prior quarter.

"(There is) work still to be done, but evidence of execution and conservatism, bolsters the turnaround narrative," Jefferies analyst Ashley Helgans said.

The Timberland and North Face parent still expects current quarter revenue to decline between 1% and 3%, but this represents a smaller fall compared to the prior two quarters.

"Our brand elevation is starting to resonate," CEO Darrell said about the Vans brand on a post-earnings call on Monday.

The company also benefited from a sequential improvement in its direct-to-consumer business as demand improves for trendier apparel and footwear.

VF Corp ( VFC ) is also planning to sell more of its products at full price as part of its turnaround plan. As a result, gross margin in the quarter was up 120 basis points versus last year to 52.2%.

Its forward price-to-earnings ratio for the next 12 months, a common benchmark for valuing stocks, was 23.29, compared with Under Armour's 28.29 and Abercrombie's 13.02.

Shares of VF Corp ( VFC ) were trading at $20.80 before the bell on Tuesday. They have fallen about 9% this year.