Outdoor success pushes VF to record first quarter
26/04/2013
It said its success in the outdoor and action sports parts of its business was one of the main reasons for a 2% rise in revenue to $2.6 billion for the quarter, compared to the first quarter of 2012. Its operating income was $360 million, an increase of 13%.
Specific to outdoor and sport, VF said operating income for this part of the business rose by 12% to $227 million. Revenues for The North Face rose by 6% with low single-digit growth in the Americas and Europe, but continued strong double-digit growth in Asia. Helped by colder weather, the brand’s direct-to-consumer business posted a strong double-digit revenue increase in the quarter.
Vans had a 25%, with a higher than 30% increase in Europe, while Timberland revenues were “in line with expectations” with a 2% rise overall and strong growth in Asia, but a decline in revenues in Europe. Timberland registered a single-digit rise in sales in the Americas.
Sportswear also contributed a 4% increase in revenues to $128 million for the quarter driven by a low single-digit increase for the Nautica brand.
“VF’s first quarter performance is a great example of our strong business model, disciplined execution and our ability to leverage all aspects of our portfolio,” said chief executive, Eric Wiseman, on announcing the results.
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