Vans helps drive recovery at VF Corp
Denver, Colorado-based outdoor and activewear group VF Corporation reported first-quarter revenue of $2.2 billion on Friday, up 104% from $1.1 billion in the prior-year period, with growth led by the Vans brand. In constant dollars, the company’s quarterly sales rose 96% year over year.
In the first quarter ended July 3, 2021, VF’s active segment saw its revenue rise 128% compared to the same period in the previous year, including a strong 110% increase at the Vans brand, as well as a 26 percentage point revenue growth contribution from the acquisition of cult streetwear label Supreme, completed in December of last year.
Excluding the impact of acquisitions, VF’s total Q1 revenue increased 90% year over year, or 83% in constant currencies.
The company’s outdoor segment saw its quarterly revenue increase 81%, including a 93% rise at The North Face, while the work segment’s revenue climbed 69%, including a 61% increase at Dickies.
Broken down by geographical region, VF’s domestic revenue rose 125%, while international sales increased 84%. This included a 175% rise in the Americas, excluding the U.S., and a 126% increase in Europe, the Middle East and Africa (EMEA). In the Asia-Pacific region sales rose 32%, with Greater China contributing a 19% increase, including 23% growth in Mainland China.
Globally, VF’s wholesale channel saw a 111% rise in sales in the quarter. Direct-to-consumer revenue increased 97%, with digital revenue rising 25%.
The company’s net income for the three-month period totaled $324.2 million, or $0.39 per shares, compared to a loss of $285.6 million, or $0.71 loss per share, in the same period in the previous year.
“Our teams delivered an outstanding first quarter, powering VF back to pre-pandemic revenue levels while driving an earnings recovery ahead of our expectations,” said VF chairman, president and CEO Steve Rendle in a release. “We continue to see broad-based momentum across the portfolio, supporting an increase to our fiscal 2022 outlook for each of our largest brands. Though the first quarter is a relatively small portion of our total year, this strong start reinforces my confidence in our ability to accelerate growth through fiscal 2022 and beyond.”
Looking forward, VF now expects its full-year revenue to be at least $12.0 billion, reflecting growth of 30%, including a contribution of $600 million from the Supreme brand. Previously the company had predicted that its annual sales would come to $11.8 billion.
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