VF Corp posts strong first-quarter results

Published:  23 July, 2018

The U.S. based branded lifestyle apparel, footwear and accessories Company has posted strong first quarter 2018 results, driven by continued broad based acceleration across core brands and platforms.

In light of recently completed acquisitions, divestitures, and organisational realignments, VF Corp says its new reportable segments are Outdoor, Active, Work and Jeans. Total revenue from continuing operations increased +23% in the first-quarter of 2019 (up +21% in constant dollars) to US$2.8 billion. Revenue in the Active segment increased +25% (up +22% on a constant basis) including a 35% (32% constant) increase in the Vans brand revenue, while revenue in the Outdoor segment was up +6% in the period (+3% in constant dollars). International revenue increased +27% (+22% constant), including a 13-percentage point revenue growth contribution from acquisitions.

“We are executing well against our 2021 growth plan and continuing on our journey to reshape the portfolio and transform VF into a purpose-led, performance driven, consumer-centric organisation focussed on and committed to delivering superior returns to shareholders”, said Steve Rendle, Chairman, President and CEO, VF Corp.

Total operating income on a reported basis was US$231 million in the quarter (US$250 million on an adjusted basis, +57%), while the operating margin on a reported basis increased 130 basis points to 8.3% and adjusted operating margin increased 200 basis points to 9%.

VF Corp, which owns brands such as Timberland, says full year fiscal 2019 revenue is now expected to be in the range of US$13.6-13.7 billion, reflecting a 10-11% increase, and adjusted earnings per share are forecast to be in the range of US$3.52 to US$3.57 (+12% to 14%).

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