At constant dollars, the company reported a 3% revenue increase year-on-year, totalled US$3.5 billion for the period.
The EMEA region saw a decrease in revenue of 2% for the period, while it achieved an increase of 10% in constant dollars. VF noted that this is the seventh consecutive quarter of double-digit growth in constant dollars.
Meanwhile, the Asia Pacific region was down by 7% in the third quarter, but up by 4% in constant dollars. The company said this reflects a sequential improvement across the region and in Greater China, where sales were down 11% (down 1% in constant dollars) and continued strong growth in the rest of Asia.
The third quarter results were led by the group’s outdoor brands, with The North Face up by 7% and 13% in constant dollars. Meanwhile, Timberland was flat for the period, with an increase of 6% in constant dollars.
Vans saw a decrease of 13% in revenue and was down by 9% in constant dollars. VF noted that this reflected positive performances in Europe and Asia outside of Greater China for the brand, while the Americas remained negative.
Looking forward, VF Corporation expects revenue for the full financial year to be up around 3% in constant dollars. Vans revenue specifically is expected to fall by a percentage in high single digits in constant dollars, a worsened forecast from the company’s last report.
Benno Dorer, Interim President and CEO, said: “We are pleased to reaffirm the recently communicated full-year 2023 EPS (earnings per share) outlook with revenue growth at approximately 3%, after navigating an increasingly challenging fiscal Q3.
“We are committed to improving execution through a sharpened focus on the biggest consumer opportunities and enhanced operational performance. Consistent with this objective, we are shifting resource priorities across the Company, including by reducing the dividend, exploring the sale of non-core assets, cutting costs and eliminating non-strategic spend, while enhancing the focus on the consumer through targeted investments. We are confident these actions will enable a return to profitable and sustainable growth and, with that, strong shareholder value creation.”
