Courtesy: VF Corporation
For the third quarter of fiscal 2017, revenue of VF Corporation, a global leader in branded lifestyle apparel, footwear and accessories, has been recorded at $3.5 billion, up 5 per cent. This increase was driven by broad-based strength across VF’s international and direct-to-consumer platforms, Outdoor & Action Sports coalition and Workwear businesses.
Outdoor & Action Sports revenue increased 8 per cent. The direct-to-consumer revenue soared 18 per cent with digital revenue up 38 per cent.
For the reported period, the company's gross margin increased to 50.1 per cent, as benefits from pricing and a mix shift toward higher margin businesses were partially offset by changes in foreign currency and an increase in product costs. Changes in foreign currency negatively affected reported gross margin during the quarter.
On a reported basis, the operating income was down 20 per cent to $484 million compared to the same period of 2016. On an adjusted basis, operating income was down 2 per cent to $593 million. Changes in foreign currency negatively affected the reported and adjusted operating profit decline by 3 percentage points during the quarter. The operating margin on a reported basis also decreased to 13.8 per cent. On an adjusted basis, third quarter operating margin declined to 16.9 per cent.
"VF’s third quarter results were strong, fueled by accelerated momentum across the company’s international and direct-to-consumer platforms and our Outdoor and Action Sports and Workwear businesses," said Steve Rendle, president and chief executive officer. "Based on the strength of our third quarter performance and the stronger growth trajectory we see for the remainder of 2017, we are again increasing our full year outlook and making additional growth-focused investments aimed at accelerating growth and value creation into 2018 and beyond. VF remains committed to returning cash to shareholders as evidenced by the increase in our dividend, which is supported by the strength of our balance sheet and the confidence we have in our strategic growth plan," said Rendle.
For fiscal 2017, the revenue is expected to increase about 6 per cent on a reported basis to approximately $12.1 billion. This compared to the previous expectation of $11.85 billion, a 3.5 per cent increase on a reported basis. Both estimates include about a $200 million contribution from the previously announced Williamson-Dickie acquisition. The international revenue is expected to increase approximately 10 per cent versus the previous expectation of a low single-digit increase (up high single-digit currency neutral). It is projected that the direct-to-consumer revenue will rise around 13 per cent as against the previous expectation of 10-11 per cent increase. (RR)
Source Fibre2Fashion News Desk – India