VF Corp’s gross margin decreased 340 basis points in the second quarter of fiscal 2021 to 50.8%, primarily driven by elevated promotional activity to clear excess inventory and the timing of net foreign currency transaction activity, according to the Group. Operating income on a reported basis was US$320 million in the period, and operating margin was 12.3%. Earnings per share amounted to US$0.62. Steve Rendle, Chairman, President and CEO, VF Corp, said the Group is “beginning to see signs of stabilisation and strength” across all aspects of its business, supporting VF’s decision to raise the dividend and provide a financial outlook for the balance of the year. “Although uncertainties remain, investments in our digital transformation are resulting in near-term momentum and improved capabilities to emerge in an even stronger position”, said Rendle.
Nearly all of VF’s retail stores in the EMEA and APAC regions, including Mainland China, remained open during the second quarter. In North America, 75% of all retail locations were open at the end of the first quarter and over 95% of all retail stores were open at the end of the second quarter, according to VF, which owns the Timberland, Vans and The North Face brands.
For full fiscal year 2021, Group revenue is expected to be at least US$9 billion, reflecting a decrease of approximately 14% on an adjusted basis, including low single-digit growth in the second half driven by a return to growth in the fourth quarter.