VF Corp revenues down on Vans, Dickies and Timberland declines
VF Corporation announced on Wednesday revenues for the recently ended second quarter dipped 4%, on the back of declines across three of its major brands - Vans, Dickies and Timberland.
The Denver-based company said total revenues for the three months ending October 1 dropped to $3.1 billion, compared to $3.2 billion in the prior-year quarter. By brand, Vans revenue plummeted 13% to $952 million, from $1.1 billion; Dickies revenues plunged 19% to $186 million; and Timberland revenues dipped 4% to $524 million; partially offset by an 8% increase at The North Face, to $951 million. VF's other brands category lifted 4%, it added.
By region, VF Corp. saw single-digit drops across all markets with the Americas declining 3%; EMEA down 4%; and APAC sales down 6%.
By channel, both direct-to-consumer and wholesale revenues were down 4%, respectively.
Earnings loss per share was $0.31 on a reported basis, down 126% on last year.
"VF’s balanced performance in Q2 demonstrates the resiliency of our brand portfolio against a more disrupted global marketplace," said Steve Rendle, chairman, president and CEO of VF.
"Our purpose built portfolio of iconic, deeply-loved brands continues to benefit from tailwinds in the outdoor, active, streetwear and workwear spaces while we also actively address the near-term challenges at Vans, the ongoing Covid-related disruption in China, and the broader macro-economic and geopolitical headwinds, which have created tremendous uncertainty for all businesses and consumers."
Looking ahead, VF Corp. reaffirmed its full-year revenue guidance of a 5% to 6% increase in constant dollars. However, the company said it had revised its earnings outlook "to reflect increased negative impacts from foreign currency fluctuations as well as heightened inventory levels and increased promotional activity in the marketplace."
As a result, adjusted EPS is now expected to be in the range of $2.40 to $2.50, versus $3.18 in the prior year and compared to the previous outlook of $2.60 to $2.70, the company said.
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