VF reports fourth quarter and full year 2021 results

United States
Published:  21 May, 2021

The corporation which owns footwear brands such as Timberland and Vans, has released fourth quarter and full year fiscal 2021 results. In the fourth quarter, revenue increased 23% to US$2.6 billion and full year revenue decreased 12% to US$9.2 billion.

Full Year
The Active segment revenue decreased 15%, including a 15% decrease in Vans brand revenue. The Outdoor segment revenue decreased 11%, including a 9% decrease in The North Face brand revenue. The Work segment revenue increased 7%, including a 9% increase in Dickies brand revenue.

International revenue decreased 7%, but Greater China revenue increased 24%. Direct-to-Consumer revenue decreased 5%, while digital revenue increased 67%.

Operating income from continuing operations was US$608 million and adjusted operating income from continuing operations decreased 45% to US$742 million.

Fourth Quarter
Revenue increased 23% to US$2.6 billion. Excluding the impact of acquisitions, revenue increased 16%, driven by VF's largest brands, e-commerce growth and an increase in
the APAC region, which experienced a significant negative impact from Covid-19 in
2020.

The quarter also included an extra week when compared to the fiscal 2020 period due to VF's 53-week fiscal 2021.

Operating income on a reported basis was US$122 million. On an adjusted basis,
operating income increased 98% to US$173 million, including a US$34 million contribution from acquisitions. Operating margin on a reported basis increased to 4.7%.

Outlook
Revenue is expected to approximate US$11.8 billion in 2022, reflecting growth of approximately 28%, including an approximate US$600 million contribution from the Supreme brand. By segment, revenue for Outdoor is expected to increase between 23% and 25%, revenue for Active is expected to increase between 34% and 36% and revenue for work is expected to increase between 10% and 12%.

Credit: Timberland