New acquisitions contribute to strong quarter for VF
24/10/2018
Revenue from continuing operations increased 6% when the contribution of new acquisitions is excluded.
The group’s active segment, which includes the Vans and Napapijri brands, saw its revenue increase 19% year on year. This included a 26% increase in revenue from Vans, led by strong online sales growth.
In the outdoor segment, a 5% increase in revenue from The North Face offset a 2% fall in revenue from Timberland, resulting in overall growth of 6% for the division. There was also a good contribution from new acquisitions, which have included Altra and Icebreaker.
The news was less positive from VF’s jeans business. In August, the group announced plans to spin off these brands into a separate entity. During the quarter, revenue from Wrangler fell 5% and revenue from Lee was 9% lower. This resulted in an overall decline of 7% from the jeans division. Moreover, in its updated outlook VF said it expects full year revenue for this division to be 1% to 2% lower than its previous expectations.
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