Frist quarter fiscal 2023 revenue increased 3% (up 7% at a constant dollar exchange rate) to $2.3 billion driven by increases in the EMEA and Americas regions which partially offset by a decline in the APAC region primarily due to Covid-19 lockdowns in China.

Gross margin decreased to 53.9%, primarily driven by mix and higher freight costs partially offset by price increases. On an adjusted basis, gross margin decreased to 54.1%. Operating income on a reported basis was $63.4 million. On an adjusted basis, operating income decreased 48% (down 40% for a constant dollar exchange rate) to $77.5 million. Operating margin on a reported basis was 2.8%. Adjusted operating margin decreased to 3.4%.

Steve Rendle, Chairman, President and CEO of VF said: “We delivered solid top-line results in Q1, ahead of our initial expectations, led by strong consumer engagement with our outdoor, streetwear and active brands amid a softer consumer environment and inflationary pressures. Importantly, we are maintaining our operating outlook for FY23, a testament to the resiliency of our purpose-built family of brands. While uncertainty persists across geographies and marketplaces from ongoing macro-economic headwinds, we are focused on the things that we can control and will continue our strategic investments to ensure long-term, sustainable and profitable growth.”