VF Corp: revenue up 6.5% for first quarter
During the presentation of its 2013 annual results, VF Corp announced expectations of 7 to 8% growth in revenue as well as a gross margin at over 49% for the 2014 fiscal year.
At the end of the first quarter, the American clothing giant has already registered an increase in its gross margin, which rose from 48.1% last year to 49.4 % over the first three months of 2014. In terms of revenue, VF has shown a 6.5% rise to 2.78 billion US dollars (2 billion euros). The group has had a good quarter and benefited from a favorable exchange rates.
"Led by outstanding performance from the Outdoor & Action Sports coalition, which had balanced growth across all channels and geographies, we delivered strong growth in revenue and profitability," said the group’s CEO, Eric Wiseman, in a statement.
In fact, the Outdoor & Actions sports coalition, which includes North Face, Vans and Timberland, recorded a 14% increase in sales to 1.13 billion euros. North Face posted +14%, with an increase of 30% in its component direct-to-consumer sales, rewarding strategic new shop openings.
Vans continues to show high growth at +20%, with double-digit growth across all geographies. Timberland has increased its turnover by 12% with an increase of over 20% for wholesale business in the Americas.
Other areas show more moderate changes. Jeanswear (Wrangler, Lee, etc.) and Contemporary Brands (7 for all Mankind) even saw declines of 4% and 5%, respectively to 498 and 71 million euros.
In contrast, Sportswear (Nautica and Kipling) and Imagewear (licenses with sports leagues) increased by 3% and 4% to 190 and 95 million euros. Other brands declined by 8% to less than 17 million euros.
For the quarter, VF Corp has achieved an operating income of 291 million euros, up 13% compared to the same period last year. Net income improved by 10% to 297 million euros.
For the full fiscal year, VF expects to achieve an 8% increase in turnover and to maintain its gross margin target at 49%.
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