// VF Corp’s quarterly sales uptick of 5.5% edges past analysts’ expectations
// However, net income falls to $128.8m compared to $252.8m last year
VF Corp’s quarterly sales growth has edged past analyst expectations, thanks to a surge in demand for core products from its Vans and The North Face chains.
For the quarter ending March 30, the US-based fashion retail company booked a 5.5 per cent rise in total revenue to $3.21 billion (£2.5 billion), which was slightly above analysts’ estimate of $3.2 billion, according to IBES data from Refinitiv.
However, net income fell to $128.8 million (£100.46 million), a significant drop from $252.8 million a year earlier.
The company is completing spinning off its less profitable jeans business, including Lee and Wrangler, this week to better focus on high-margin brands such as Vans and The North Face.
As a result, VF Corp expects 2020 revenue to be the range of $11.7 billion to $11.8 billion.
This is much lower than analysts’ average forecast $14.6 billion.
The news promoted shares in VF Corp to drop by nine per cent.
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