VF Corp raises full year guidance

Worldwide
Published:  24 January, 2020

The U.S. headquartered footwear and lifestyle products manufacturer, owner of the Timberland brand, has posted revenue from continuing operations up 5% (+6% in constant dollars) to US$3.4 billion for the third quarter of its fiscal 2020.

VF Corp’s revenue in the Active segment increased 8% in the third quarter of the Group’s fiscal 2020, including a 12% increase in Vans brand revenue, while the Outdoor segment revenue grew 3%, including an 8% increase in The North Face brand revenue. International revenue increased 8% in the period, with revenue in Europe up 4% and revenue in China up 30%. Direct-to-Consumer grew 7% in the quarter and digital revenue +16%. On a reported basis, gross margin increased 110 basis points to 55.7%, and operating income totalled US$579 million. On an adjusted basis, operating income increased 11% to US$595 million. Earnings per share was US$1.13 on a reported basis. The Group has raised its full year fiscal 2020 outlook, with adjusted revenue from continuing operations now expected to be approximately US$11.75 billion (+5%), and adjusted earnings per share US$3.30, reflecting growth of approximately 15%.