VF Corporation reported a 9 percent decrease in revenues to USD 1.9 billion in the first quarter, with losses clocked across all regions and brands.
SEE ALSO: EssilorLuxottica acquires Supreme from VF Corp for USD1.5 billion
The owner of Vans, Timberland, and The North Face said sales in its Asia Pacific market fell 3 percent to USD 309.7 million, held up by improving Greater China sales, which were up 4 percent in constant exchange rates.
APAC fared much better than Europe, Middle East, and Africa, down 5 percent, and the Americas, plummeting 12 percent.
By brand, Vans sales were down the most, plunging 21 percent, followed by Dickies, down 15 percent, and Timberland, contracting 10 percent. Outerwear brand The North Face dipped 3 percent, while the company’s other brands segment, made up of Icebreaker, JanSport, and Supreme, increased 8 percent.
By channel, direct-to-consumer sales fell 10 percent, while wholesale revenues contracted 9 percent during the quarter ending June 30.
“As I complete my first year at VF, I feel more energized than ever. While the business is still down, the rate of decline moderated quarter-over-quarter versus Q4 and across almost all our brands. We advanced further on the Reinvent transformation plan,” said Bracken Darrell, president and CEO, VF Corp, who was appointed to turnaround the U.S. fashion group last year.
“We are on track to deliver our targeted cost savings and we have addressed one of our top financial priorities to strengthen the balance sheet with the announced sale of Supreme. Together with the first-class leadership team I have built, we are confident we will continue to make progress to return to growth and drive strong, sustainable value creation at VF.”
The earnings update comes just weeks after VF Corp. announced the sale of luxury streetwear brand Supreme to Italian eyewear manufacturer EssilorLuxottica in a USD1.5 billion cash transaction.