The company’s Active segment revenue increased 25% including an 8% increase in Vans brand revenue and a 17% revenue growth contribution from acquisitions. Outdoor segment revenue increased 23%, including a 28% increase in The North Face brand revenue, while Work segment revenue increased 6%, including a 4% increase in Dickies brand revenue.
International revenue increased 19%, including a 5% revenue growth contribution from acquisitions. In Europe, revenue increased 26% while revenue in Greater China fell by 6%, including an 8% decrease in Mainland China.
Direct-to-consumer revenue increased 30%, while digital revenue increased 21%. Excluding acquisitions, digital revenue increased 61% over the same period in the previous year.
VF Corp has modified its business practices throughout the 2022 financial year to combat Covid-19 outbreaks and comply with restrictions, including the temporary closing of offices and retail stores, instituting travel bans and restrictions and implementing health and safety measures including social distancing and quarantines.
The company reports the following along with its financial results: “The majority of VF’s supply chain is currently operational. Suppliers are complying with local public health advisories and governmental restrictions which has resulted in isolated product delays. Covid-19 related manufacturing capacity constraints have continued during the third quarter, though the situation has improved over time.
“VF expects to be back to nearly full capacity in the coming weeks. Additionally, continued port congestion, equipment availability and other logistics challenges have contributed to ongoing product delays. VF is working with its suppliers to minimise disruption and is employing expedited freight as needed. VF’s distribution centres are operational in accordance with local government guidelines while maintaining enhanced health and safety protocols.”
In North America, no stores were closed during the third quarter (Currently, all stores are open). In the EMEA region, 6% of stores were closed during the third quarter and, currently, only one store is closed. Meanwhile, in the APAC region, including Mainland China, nearly all stores were open at the beginning of the third quarter. No stores were closed at the end of the quarter and, currently, 1% of stores are closed.
Full year outlook
The company now expects full year fiscal 2022 revenue to be approximately US$11.85 billion, reflecting growth of around 28%, including an approximate US$600 million contribution from the Supreme brand.
Direct-to-consumer revenue is now expected to increase between 32% and 34% versus the previous expectation of 34% and 36%, including digital revenue growth of greater than 15% versus the previous expectation of about 20%.
Steve Rendle, VF Corp Chairman, President and CEO, said: “The broad-based momentum across our brands is testament to the resilience of our diversified portfolio model, which has enabled us to deliver a strong quarter and reaffirm our full-year earnings outlook in a challenging environment. I am confident that VF remains well-positioned for continued, profitable, long-term growth.”