China and macro headwinds challenge VF Corp
Denver-based apparel and footwear group VF Corporation has released its financial results for the second quarter ended October 1, revealing that total revenue across its portfolio of 12 brands declined 4% year on year (YOY), achieving $3.1 billion.
One of the business’ strongest brands, outdoor company The North Face (TNF), saw its revenue grow by 8% over the equivalent three-month period during fiscal 2022 to reach just over $950 million.
These figures were only beaten by group-owned footwear brand Vans, which registered approximately $952 million in revenue after dropping 13% YOY.
When considered in light of the full first six months, TNF’s revenue rose by 15% YOY to slightly above $1.4 billion, whereas Vans was down 10% to $1.9 billion against the comparative half-year reporting period.
Group revenue across the board declined 1% YOY to $5.3 billion in the first half.
Chairman, president and chief executive Steve Rendle cited covid-related disruptions in the Chinese market, in particular, as one cause of the headwinds the group experienced. He made reference to global macroeconomic and geopolitical instability, which he said had “created tremendous uncertainty for all businesses and customers”.
Regarding the situation at Vans, Mr Rendle said the business was actively addressing its “near-term challenges”.
Image: VF Corporation/The North Face.
