VF Corp Q1 sales hit by APAC store closures, Vans dip
The Denver, Colorado-based company said revenues for the three months ending July 2 totalled $2.3 billion, up 3% (up 7% in constant dollars) with its big four brands up 2% (up 6% in constant dollars) and the balance of the portfolio up 9% (up 16% in constant dollars).
By brand, The North Face recorded revenues of $481.1 million, up 31% on the same quarter last year, with Timberland gaining 8% to $269.5 million. Both Vans and Dickies recorded a downturn in sales for the quarter, falling 7% and 15%, to $946.8 million and $170.4 million, respectively. The company's 'other brands' category lifted 9%, to $393.9 million.
By region, the Americas, VF Corp.'s largest market, increased 6% to $1.4 billion and the EMEA market increased 10% to $594.6 million; offsetting a 20% plunge in APAC revenues and a 1% dip in the company's international segment for the three months.
For the quarter, VF Corp. reported an earnings loss per share of $0.14 on a reported basis. On an adjusted basis, earnings per share decreased 68%, to $0.09.
"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, chairman, president and CEO 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 macro-economic 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.”
The first quarter 2023 earnings update comes on the back of strong fiscal 2022 for VF Corp.
Company revenues for the full year ending April 2 totalled $11.8 billion, lead by Vans, up 20% to $4.16 billion, and The North Face, up 33% to $3.26 billion during the twelve-months period. Timberland recorded a 20% uptick in sales to $1.82 billion, while Dickies lifted 19% to $837 million, the company said at the time of reporting in May.
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