Record Q1 results at VF

25/04/2007

VF Corporation has posted record results for its first quarter ended March 31. Revenues rose 15% to $1.67 billion compared with $1.46 billion in the first quarter of 2006, driven by higher revenues across the company’s Outdoor, Jeanswear and Imagewear businesses. Income increased 13% to $134.1 million compared with $118.1 million in the prior year quarter.

Revenues for its Outdoor sector were up 40% to $538.8 million, with strong gains across nearly every brand. Domestic revenues grew 31%, while international revenues rose 52%. The North Face, Vans, Kipling, Reef, Napapijri and Eastpak brands all posted double-digit revenue gains and the acquisition of the Eagle Creek brand of adventure travel gear added $6 million to revenues in this period.

The Jeanswear coalition, which includes Wrangler, Lee and Riders brands, posted an 8% gain in revenues. Domestic revenues rose 5%, while international revenues grew 14%. Jeanswear revenues in Asia were up over 30%, and the company’s joint venture in India also contributed to revenues in the quarter.

Total revenues for the Sportswear sector, which includes Nautica and John Varvatos brands as well as the Kipling brand in North America, declined 9% in the quarter. The Kipling and John Varvatos businesses both posted double-digit revenue gains while, as predicted, revenues for the Nautica brand declined.

The company expects full year revenues to total approximately $7 billion, an increase of over 12%. Second quarter revenues are expected to grow 14%.