VF Corp posts positive third quarter results

Worldwide
Published:  22 January, 2019

The branded lifestyle apparel, footwear and accessories Group, owner of Timberland and Vans, has reported revenue from continuing operations up +8% in the third quarter of its fiscal 2019.

VF Corp’s revenue from continuing operations increased +8% (up +10% at constant rates) to US$3.9 billion in the third quarter of the Group’s fiscal 2019. Revenue in the Active segment increased +16% in the period, including a +25% increase in Vans brand revenue, while revenue in the Outdoor segment increased +11%, including a +14% increase in The North Face brand revenue and a 4-percentage point revenue growth contribution from acquisitions. Revenue for the Timberland brand increased +1% in the quarter (+3% at constant exchange rates).

Gross margin is reported to have increased 40 basis points to 51.9%, driven by “a mix-shift toward higher margin businesses”. On an adjusted basis, gross margin increased 60 basis points to 52.2%. The Group’s International revenue is reported to have increased +5%, including a 1-percentage point revenue growth contribution from acquisitions net of divestitures. Revenue in China was up +18% in the period.

VF says full year fiscal 2019 revenue is now expected to increase approximately +12% to at least US$13.8 billion.