VF Corporation has reported its financial results for its third quarter ending October 3, 2015 with a revenue increase of three percent over last year which was driven by double-digit growth in its outdoor and action sports division.
Third quarter revenue for the outdoor and action sports division was up 13 percent on a currency neutral basis (up five percent reported to $2.3 billion) driven by similar growth rates in both its wholesale and direct-to-consumer businesses with its operating income up three percent to $488 million. The North Face brand rose 11 percent (up six percent reported), while Vans is up 10 percent (up two percent reported).
VF’s sportswear division revenue was down one percent to $162 million based on a low single-digit percentage decline in Nautica brand revenue compared with the same period last year. In the third quarter, operating income was flat at $23 million while operating margin improved 20 basis points to 14.3 percent (as reported).
“2015 is on track to be another solid year for VF, driven by strong performances in our Outdoor & Action Sports and Jeanswear brands and our International and Direct-to-Consumer platforms,” said Eric Wiseman, VF Corp. chairman and CEO in a statement. “And while we see some softness in certain areas of our business and have elected to true up our full year outlook, our fundamentals remain solid and we have great confidence in our ability to provide sustainable, long-term returns for our shareholders.”