VF Corp has reported total revenue in the fourth quarter of 2016 in line with the corresponding quarter the previous fiscal year, at US$3.3 billion (+1% currency neutral), driven by strength in its international and direct-to-consumer platforms. Gross margin improved benefitting from pricing, lower product costs and a mix-shift toward higher margin businesses were partially offset by changes in foreign currency and the impact of restructuring charges, according to the company.
Revenue in fiscal 2016 was also in line with the previous year at US$12 billion (+1% currency neutral). Changes in foreign currency is reported to have negatively affected both reported and adjusted gross margins in the year. Operating income on a reported basis was down 16% to US$1.5 billion against the same period in 2015. Adjusted operating income was down 6% to US$1.7 billion.
The Timberland brand revenue was up 4% in the fourth quarter of 2016 (+5% currency neutral); including a low single-digit rate increase in the Americas region, a high single-digit rate increase in Europe (up low double-digits currency neutral), and a mid-single-digit rate increase in Asia Pacific. Full year Timberland brand revenue was up 1% to US$1.8 billion.
“The pace of change in both our industry and the broader consumer landscape is happening at an accelerated rate,” said Steve Rendle, President and CEO, VF. “The proliferation of technology and innovation across all aspects of our lives has shifted consumers’ shopping behaviours and elevated their expectations when engaging with our brands. We are pivoting to become more agile and consumer centric to compete and win in this changing global marketplace”, he added.
In 2017, VF expects to return more than US$1.6 billion to shareholders through share repurchases and dividends.
