Vans owner VF Corporation raises outlook after solid Q2

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VF Corporation

VF Corporation, the company behind leading fashion retailers Timberland, The North Face, Lee and Vans, has raised its outlook for the year following second quarter growth.

Revenues across all its brands jumped two per cent in the period to $2.4 billion (£1.84 billion), up three per cent on a currency neutral basis, while gross margins improved 80 points to 49.7 per cent.

Skateboarding apparel giant Vans saw revenues jump eight per cent, while outdoor brand The North Face saw revenues jump a further five per cent.

Timberland’s revenues also rose by two per cent globally, but denimwear brands Lee and Wrangler saw a two and seven per cent revenue decline respectively.

Direct-to-consumer sales saw a 13 per cent boost alongside a digital revenue rise of 34 per cent.

Across the world, China saw the most significant rate of growth at 13 per cent, as international sales rose by four per cent.

READ MORE: Lee Wrangler to make UK outlet debut in London Designer Outlet

In light of the solid second quarter figures, VF now expects revenues to hit $11.65 billion (£8.93 billion) for the year, up two per cent.

All its categories except sportswear, which is expected to see high single digit decline, are expected to perform better than previous expectations.

“VF’s second quarter results were solid and consistent with our expectations, driven by strong results from our largest global brands, the company’s international and direct-to-consumer platforms, and our growing workwear businesses,” chief executive Steve Rendle said.

“We have really good momentum as we move into the second half of 2017 and are confident in our growth engines, as evidenced by an increase in our full year outlook and our plan to increase our cash returns to shareholders.

“Based on the strength of the first half of 2017 and our expectations for the second half of the year, we are making growth-focused investments in our largest brands and platforms to generate additional value for our shareholders both in the near and long term.”

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