Vf corp reports strong results for transition period

by Brian Lipton

VF Corporation has reported financial results for its three-month transition period ended March 31, 2018. (As previously disclosed, VF’s Board of Directors authorized a change in the company’s fiscal year end to the Saturday closest to March 31 from the Saturday closest to December 31.) During this period, results were affected by the acquisition of Williamson-Dickie and the recent sale of Nautica to Authentic Brands Group.

Earnings per share were $0.67, up 30 percent; revenue rose to $3 billion, an increase of 22 percent; and operating income was $330 million, up 14 percent. The Outdoor & Action Sports revenue increased 19 percent, with strong gains from Vans and The North Face; international revenue increased 27 percent; and direct-to-consumer revenue increased 34 percent.

Looking ahead, the company also adjusted its full year fiscal 2019 outlook. Adjusted earnings per share are expected to be in the range of $3.48 to $3.53, reflecting growth between 11 percent and 13 percent; while revenue is expected to be in the range of $13.45 billion to $13.55 billion, reflecting growth of approximately 9 to 10 percent.

“VF’s transition period results were strong as the broad-based growth acceleration that began in the second half of 2017 continued,” said Steve Rendle, the company’s chairman, president and Chief Executive Officer. “Our core growth engines are driving strong global momentum as we begin to enter the acceleration phase of our 2021 strategy. VF is in the midst of a transformation to become a purpose-led, consumer-centric organization. We are evolving and adapting to a rapidly changing marketplace and remain committed to delivering top quartile returns for our shareholders.”