VF Corp. released third-quarter revenues of $3.51 billion, with the Vans brand surging 28% and international revenues up 13%.
For the period ended 30 September 2017, the American fashion company – which operates a mix of shoe, sports and outdoorwear brands – posted total revenues gained 5.4% from $3.33 billion last year, to reach $3.51 billion. Revenues included a 5.5% increase in net sales to $3.48 billion from $3.30 billion, according to the firm’s report.
For the third-quarter, VF Corp. recorded a net income of $386.1 million, or 97 cents a diluted share, from $498.5 million, or $1.19, a drop of 22.5% on a year ago. The company said that gross margin from continuing operations rose 100 basis points to 50.1% in the quarter.
By brand, the Vans brand saw revenue up 28%, while the North Face and Timberland saw earnings fall by both 2 and 1%, respectively.
By category, outdoor and action sports divisions, saw an increase of 8%, while in jeanswear, revenue fell 1% to less than $698 million. Imagewear grew 9% to nearly $139 million, and sportswear remained stable at $140 million. The rest of VF Corp. activities accounted for $29 million, 6% less than last year, it said.
By market, international revenues gained 13%. Direct-to-consumer revenues rose 18% and digital revenues were up 38%.
On the global front, an 18% gain was witnessed in Europe and 9% in China.
“Based on the strength of our third-quarter performance and the stronger growth trajectory we see for the remainder of 2017, we are again increasing our full-year outlook and making additional growth-focused investments aimed at accelerating growth and value creation into 2018 and beyond.
VF remains committed to returning cash to shareholders as evidenced by the increase in our dividend, which is supported by the strength of our balance sheet and the confidence we have in our strategic growth plan,” said Steve Rendle, president and chief executive officer.
In addition, the company said it is committing another $25 million to accelerate its growth strategy in 2017.
Part of the growth plan is to prioritize digital and direct-to-consumer, increase focus on the Asian market, particularly China, and reshape the company’s brand portfolio.
“Our 2021 strategic growth plan fuels our aspiration to consistently grow by creating amazing products and brand experiences that transform and improve the lives of consumers worldwide,” said Rendle, earlier in the year.
The firm said it expects GAAP EPS to be $2.73, and $3.01 on an adjusted basis, compared with the previous forecast of $2.96. Revenues were forecast even more, to be up 6% to $12.1 billion, compared with prior guidance of $11.85 billion.
VF Corp. is the parent company of over two-dozen brands including The North Face, Wrangler, Timberland and Vans.