VF untroubled by revenue dips in 2015
22/02/2016
However, the Outdoor & Action Sports sector performed well, rising 3% to $7.4 billion.
“The final quarter of 2015 challenged many companies to leverage core strengths and adapt quickly to a changing landscape,” said CEO Eric Wiseman.
“Our focus, discipline and agility amid a softer consumer environment, record warm weather and a strengthening dollar have us well positioned to navigate what we believe to be a relatively short-term challenge. Going forward, I remain confident in VF’s ability to deliver continued long-term profitable growth and value creation for our shareholders.”
Fourth-quarter revenue for The North Face and Timberland both fell 4%, impacted significantly by record warm weather. Revenue for the Vans brand was up 3%.
Fourth-quarter sportswear revenue decreased 9% to $196 million. Nautica revenue was down at a low double-digit percentage rate and the Kipling brand’s US business was up at a low single-digit percentage rate compared with the same period last year.
Despite the results, Mr Wiseman was confident for 2016. He said: “We believe the current environment provides a significant opportunity for VF. With history as our teacher, we know that powerful brands and companies with strong balance sheets can capitalise on environments like this. That is exactly our intention.
“By focusing on our strengths – driving innovation into the marketplace, telling great stories to connect with consumers and operating with financial discipline – we will seize this opportunity to complete 2016 better positioned than we ever have been.”
Image credit: The North Face
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