US apparel and footwear retailers VF Corporation (VF) said on Friday that revenue in its fourth quarter of 2015 ended on 2 January 2016 dropped 5 percent to USD3.41 billion from USD3.58 billion in the fourth quarter of 2014. On currency neutral basis, sales fell 1 percent. Excluding the effect of 2014’s 53rd week and currency swings, sales rose 3 percent. Net profit jumped 156 percent to USD312.2 million.
Revenue in the Asia-Pacific region increased 3 percent in the fourth quarter. Stripping out the effect of exchange rates, revenue in the region rose 8 percent.
The company which owns The North Face, Timberland and the Lee brand saw the North Face brand’s revenue up at a low single-digit percentage rate in Asia-Pacific excluding exchange rate effects, while the Lee brand register a low double-digit percentage increase in the region. Timberland’s fourth quarter revenue in the region was down at a low single-digit rate on a currency neutral basis.
For the full year of 2015, the company’s revenue jumped 7 percent to USD12.4b excluding the impact of changes in foreign currency and the 53rd week, driven by strength in its Outdoor & Action Sports coalition, and its international and direct-to-consumer platforms.
"The final quarter of 2015 challenged many companies to leverage core strengths and adapt quickly to a changing landscape," said Eric Wiseman, VF Chairman and CEO. "Our focus, discipline and agility amid a softer consumer environment, record warm weather and a strengthening US dollar have us well positioned to navigate what we believe to be a relatively short-term challenge. Going forward, I remain confident in VF’s ability to deliver continued long-term profitable growth and value creation for our shareholders."
The company now expects revenue of 2016 to increase at a mid single-digit percentage rate, including about one percentage point of negative impact from changes in foreign currency.
In the Asia-Pacific region, full year currency neutral revenue is expected to increase at a low double-digit percentage rate.