VF Corp, the parent company of popular brands like Vans, The North Face, and Supreme, has announced disappointing revenues for the second quarter. Despite a 23% increase from the previous year, with revenue standing at $3.2 billion, the company fell short of analysts’ expectations of $3.5 billion. As a result, the company’s shares experienced a 7% drop during premarket trading.

It is important to note that these revenue figures exclude the contribution of Supreme, which was acquired by VF Corp in December 2020. When factoring in the acquisition, VF Corp saw a year-over-year revenue growth of 19%. The company’s active segment revenue increased by 16%, primarily driven by an 8% increase in sales of Vans products and the growth of other acquired brands. The outdoor segment, fueled by a 31% rise in revenue from The North Face, saw an impressive 31% growth. Additionally, revenues in the work segment rose by 18% due to the success of the Dickies brand, which experienced a 21% increase.

On an international scale, VF Corp witnessed an 18% increase in revenue compared to the previous year. Europe saw a 19% rise in sales, while Greater China experienced a 9% increase. In terms of distribution channels, the company’s direct-to-consumer business recorded a 32% increase in revenues, with digital revenues growing by 24%. However, the wholesale channel encountered challenges due to port delays and logistics issues, resulting in a 17% increase in revenue.

Quarterly net earnings for VF Corp were $464.1 million, or $1.18 per share, compared to $256.7 million, or $0.62 per share, in the same period last year. Despite these disappointing results, VF Corp’s chairman, president, and CEO, Steve Rendle, expressed confidence in the company’s growth strategy, highlighting the encouraging momentum across their brand portfolio.

In the first half of the fiscal year, VF Corp’s revenues soared to $5.4 billion, marking a significant 46% increase compared to the previous year. Earnings for the first half were $788.3 million, or $1.58 per share, in contrast to a loss of $28.9 million, or $0.09 per share, experienced last year. Despite ongoing disruptions caused by the pandemic, VF Corp has observed strengthening demand signals across its business.

Looking ahead, VF Corp anticipates full-year revenue to reach approximately $12.0 billion, reflecting a growth rate of around 30%. The company remains optimistic about its future prospects and believes that its resilient and flexible business model will continue to drive growth in the coming quarters.

Useful links:
VF Corp Official Website
VF Corp Stock Information