VF reports positive operational results for Q3

Worldwide
Published:  27 October, 2015

VF Corp, the global footwear and apparel manufacturer, owner of Timberland, has reported increased revenue performance for the third-quarter of 2015 but impacted by currency changes.

Revenue was up 8% on a currency neutral basis, driven by double-digit growth in the Outdoor & Action Sports and direct-to-consumer businesses. On a reported basis, revenue increased 3% over the same quarter in 2014.

On a currency neutral basis, the year-to-date revenue increased 9% and earnings per share were up 15% for the period. Gross margin was 48.9% on a currency neutral basis, representing a 60 basis point improvement over the same period last year.

Currency neutral operating income increased 14%, up 2% reported to US$643 million, compared with Q3 in 2014. Currency neutral operating margin was 19%.

Q3 revenue for the Timberland brand was up 21% on a currency neutral basis, including more than 25% growth in its wholesale business and a low single-digit increase in direct-to-consumer sales. In the Americas’ region, business was in line with expectations with revenue up by more than 40%, due to a combination of strong performance and lower third quarter revenue in 2014 due to phasing of orders.

However, revenue was up at a low single-digit percentage rate in the Asia-Pacific region, and at a high single-digit percentage rate in Europe.

“Today’s results speak to the power of VF’s brands and platforms to perform well in what is proving to be a mixed retail environment. We delivered excellent operating results by staying focused on what we do best – bringing relevant, innovative product to the marketplace, amplifying our relationships with consumers and driving operational excellence into every area of our business’, said Eric Wiseman, VF Chairman and CEO.