VF Corp performs better than expected in Q1

Like Capri Holdings, another heavyweight in American fashion, VF Corp sees its sales jump between April and June 2021, and raises its annual outlook. The group, which owns Timberland, Vans and The Norh Face among others, doubled sales to $ 2.19 billion (€ 1.85 billion) in the first quarter of its 2021-22 fiscal year ended 3 July, when analysts had expected 2.17 billion.

Vans saw sales jump 110% in Q1 – Instagram: @vans

Sales climbed 104% (+ 96% at constant exchange rates) from the first quarter of last year. Excluding acquisitions – VF Corp took over the streetwear brand Supreme at the end of 2020 – growth would have been 90%, the company said in a statement, which also sold nine of its clothing brands in April. work. The latter is back to its pre-Covid level, approaching the 2.27 billion achieved in the first quarter of its 2019-20 fiscal year, falling 3.5% over two years.

In particular, Vans stood out as the best performing brand in this quarter with sales up 110%. The North Face’s revenue grew 93%, while Timberland’s by 70%.

In the first three months of its current fiscal year, the group posted a net profit of $ 324 million compared to a loss of $ 285 million in the same period a year earlier and a profit of $ 49 million two years ago. . “Our teams had an exceptional first quarter, bringing VF back to its pre-pandemic sales levels while generating a return to earnings above our expectations,” commented CEO Steve Rendle.

“We continue to see overall momentum across the portfolio, driving our outlook for FY2022 up for each of our largest brands. Although the first quarter is only a small part of the throughout the year, this good start reinforces my confidence in our ability to accelerate growth throughout fiscal year 2022 and beyond “, he continued, while recalling that” the environment in short term remains somewhat clouded by resurgences of the virus in Southeast Asia, uncertainties in other regions caused by the impact of new variants and new pressures on the global supply chain “.

From a geographic point of view, the group recorded a strong recovery in its domestic market (+ 107%) as well as in the EMEA region (+ 126%), while in Asia-Pacific, its sales increased by 32% ( + 19% in Greater China and + 23% in mainland China).

For the year as a whole, VF Corp has raised its forecasts, now counting on a turnover of at least 12 billion dollars against 11.8 billion initially expected, and on a growth of 30%. The group is targeting a turnover of 600 million dollars for its new brand Supreme.

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