Vans helps to drive strong quarter at VF Corp

VF Corp reported better than expected first-quarter earnings and sales amid rising demand for its top brands and raised its guidance for the year.
“Our teams delivered an outstanding first quarter." : VF Corp CEO.
// VF Corp now expects its full-year revenue to be at least £8.6 billion, up from £8.4 billion
// The strongest performing brand from the group was Vans, whose sales surged 110%

VF Corp reported better than expected first-quarter earnings and sales amid rising demand for its top brands and raised its guidance for the year.

The company, whose brands include Timberland, The North Face, Vans, and Dickies reported first-quarter revenue of £1.5 billion on Friday, up 104 per cent from £789 million in the prior-year period, with growth led by the Vans brand.

In constant dollars, the company’s quarterly sales rose 96 per cent year over year.

VF’s active segment saw revenue rise 128 per cent in the first quarter of 2021 compared to the same period the previous year, thanks to a strong 110 per cent increase at the Vans brand alongside a 26 percentage point revenue growth contribution from the acquisition of the cult streetwear label Supreme, which was completed in December.

Excluding the impact of acquisitions, VF’s total Q1 revenue increased 90 per cent compared to the previous year.

The company’s outdoor segment saw its quarterly revenue increase 81 per cent, including a 93 per cent rise at The North Face, while the work segment’s revenue climbed 69 per cent, including a 61 per cent increase at Dickies.

VF’s domestic revenue rose 125 per cent, while international sales increased 84 per cent.

This included a 126 per cent increase in Europe, the Middle East and Africa.

Globally, VF Corp’s wholesale channel saw a 111 per cent rise in sales in the quarter while direct-to-consumer revenue increased 97 per cent, with digital revenue rising 25 per cent.

The company’s net income for the three-month period totaled £232 million, or £0.28 per shares, compared to a loss of £204 million.

VF Corp now expects its full-year revenue to be at least £8.6 billion, reflecting growth of 30 per cent, including a contribution of £430 million from the Supreme brand.

Previously the company had predicted that its annual sales would come to £8.4 billion.

VF Corp chairman Steve Rendle said in a press release: “Our teams delivered an outstanding first quarter, powering VF back to pre-pandemic revenue levels while driving an earnings recovery ahead of our expectations,”

“We continue to see broad-based momentum across the portfolio, supporting an increase to our fiscal 2022 outlook for each of our largest brands.

“Though the first quarter is a relatively small portion of our total year, this strong start reinforces my confidence in our ability to accelerate growth through fiscal 2022 and beyond.”

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