VF Corporation reported revenue growth of 3 percent for the first quarter. Whilst the company observed a decline in its Vans business, it was offset by double-digit growth from The North Face brand. According to the Denver-based company, its revenue for the past three months ending July 2 totalled 2.3 billion USD. This demonstrates a 3 percent increase (7 percent in constant dollars) from the previous year, and a 2 percent increase for the company’s big four brands. Overall, the brand’s portfolio increased 9 percent.
As one of the highest profile brands of the VF conglomerate, The North Face generated revenues of 481.1 million USD. This was up 31 percent compared to the same quarter last year. Demonstrating a similar upward trend, Timberland generated USD 269.5 million USD, up 8 percent from last year.
Despite this relative success, retail sales fell 7 percent and 15 percent for Vans and Dickies in the quarter, to 946.8 million USD and 170.4 million USD, respectively. However, a 9 percent increase in the company’s ‘other brands’ category contributed to the USD 393.9 million USD overall increase.
VF Corp.’s largest market, the America, increased 6 percent to 1.4 billion USD and the EMEA market grew 10 percent to 594.6 million USD. This offset a 20 percent decline in APAC revenues and a 1 percent decline in international sales. According to VF Corp., the first quarter ended with a reported loss of 0.14 USD per share.
In adjusted terms, earnings per share decreased 68 percent to 0.09 USD. During the 12-month period ending April 2, The North Face went up 33 percent to 3.26 billion USD, led by Vans, which increased 20 percent to 4.16 billion USD. In May, Timberland reported a 20 percent increase in sales to 1.82 billion USD, while Dickies reported an 18 percent increase to 837 million USD.
“We delivered solid top-line results in Q1, ahead of our initial expectations, led by strong consumer engagement with our outdoor, streetwear and active brands amidst a softer consumer environment and inflationary pressures. Importantly, we are maintaining our operating outlook for FY23, a testament to the resiliency of our purpose-built family of brands,” said Steve Rendle, President, CEO and Chairman of VF Corp.
“I remain impressed by our teams, whose passion, perseverance and execution continue to drive our success. While uncertainty persists across geographies and marketplaces from ongoing macroeconomic headwinds, we are focused on the things that we can control and will continue our strategic investments to ensure long-term, sustainable and profitable growth,” he continued.