Timberland pursues footwear diversification strategy

Worldwide
Published:  22 October, 2018

VF Corp’s revenue from continuing operations are reported to have increased +15% (+ 16 % on a constant basis) to US$3.9 billion in the second quarter of the Group’s fiscal 2019, with Timberland’s revenue in China almost doubling year-on-year.

Revenue in the Group’s Active segment increased +19%, including a +26% increase in the Vans brand. Outdoor segment revenue was up +6%, including a +5% increase in The North Face brand and a 5-percentage point revenue growth contribution from the Williamson – Dickie, Icebraker and Altra acquisitions.

Vans is said to have recorded strong growth in all regions, channels and product families, with revenue from digital sales up +29% and wholesale up +23% in the quarter. Revenue from the footwear category increased +25% and apparel and accessories +20%. VF Corp says it expects the brand’s revenue to increase between +18 and +19% in fiscal 2019.

Worldwide revenue for the Timberland brand was down -2% in the second quarter of fiscal 2019. VF Corp says the performance was primarily due to customer bankruptcy in the U.S. (-5%) for the Timberland Pro range and the timing of shipments to the EMEA region (-2%). Direct-to-consumer was down -3% in the period but was partially offset by a +25% growth in digital. Revenue in the APAC region was up +3%, of which revenue in China was up nearly +100% with balanced growth across both wholesale and direct-to-consumer. VF says the diversification of business continues, with non-Classic footwear up double digits in both men’s and women’s. Revenue growth in fiscal 2019 is expected to be between +2% and +4%.