Fashion giant VF Corp has reported healthy earnings across its brands for its third quarter, raising its outlook for the full year.
For the quarter ending September 30, group revenues jumped five per cent to £2.66 billion, while gross margins rose 100 basis points to 50.1 per cent.
The company, which includes fashion retailers Timberland, The North Face, Lee and Vans, saw direct to consumer revenue jump 18 per cent and digital revenues rocket by 38 per cent.
Its runaway performer was skateboarding brand Vans which saw its revenue jump 28 per cent, followed by denim brand Lee with a 12 per cent rise.
Sales across Europe grew 18 per cent, above the international revenue rise of 13 per cent and a nine per cent jump in China.
In light of the promising growth, VF Corp now expects a revenue rise of six per cent to £9.18 billion, up from previous estimates of £8.99 billion.
“VF’s third quarter results were strong, fueled by accelerated momentum across the company’s international and direct-to-consumer platforms and our Outdoor and Action Sports and Workwear businesses,” chief executive Steve Rendle said.
“Based on the strength of our third quarter performance and the stronger growth trajectory we see for the remainder of 2017, we are again increasing our full year outlook and making additional growth-focused investments aimed at accelerating growth and value creation into 2018 and beyond.
“VF remains committed to returning cash to shareholders as evidenced by the increase in our dividend, which is supported by the strength of our balance sheet and the confidence we have in our strategic growth plan.”
