VF Corp revenues disappoint in second quarter
VF Corp, the parent company of brands including Vans, The North Face and Supreme, has reported revenue of $3.2 billion for Q2, representing an increase of 23%, or 21% in constant currencies, from $2.6 billion in the prior-year period.
This figure disappointed analysts, coming in under the FactSet consensus of $3.5 billion cited by MarketWatch and leading to a drop of almost 7% in the company’s shares in premarket trading on Friday.
Excluding the contribution of Supreme, acquired by the company in December 2020, VF’s revenue saw a year-over-year rise of 19%, or 17% in constant currencies, in the second quarter ended October 2, 2021.
The group’s active segment revenue increased 16%, including an 8% increase at Vans and an 8 percentage point growth contribution from acquisitions, while its outdoor segment posted 31% growth, including a 31% increase at The North Face. Revenues in VF’s work segment rose 18%, including 21% growth at the Dickies brand.
International revenue at the company increased 18% year over year, with sales rising 19% in Europe and 9% in Greater China.
By distribution channel, the company’s revenues rose 32% in its direct-to-consumer business, with digital revenues increasing 24%. The wholesale channel, which as VF pointed out, “continues to be materially impacted by the timing of shipments due to port delays and logistics challenges,” saw a 17% rise in revenue.
Quarterly net earnings at the company were $464.1 million, or $1.18 per share, up from $256.7 million, or $0.62 per share, in the same period in the previous year.
“As we move through the halfway point of our fiscal year, I remain encouraged by the underlying momentum across the portfolio, and the broad-based nature of this strength gives me confidence that we are driving the right strategy to accelerate growth in the quarters ahead,” commented VF chairman, president and CEO Steve Rendle in a release.
In the first half of its fiscal year, VF’s revenues totaled $5.4 billion, up 46% from $3.7 million in the same six-month period in the previous year. Earnings were $788.3 million, or $1.58 per share, compared to a loss of $28.9 million, or $0.09 per share, last year.
“While the recovery has been impacted by further pandemic-related disruptions, we continue to see accelerating demand signals across our business, and our ability to reaffirm our fiscal 2022 revenue and earnings outlook is a clear testament to the resiliency and optionality of our mode,” added Rendle.
Looking forward, VF expects to report full-year revenue of approximately $12.0 billion, reflecting growth of around 30%.
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