VF Corp, the Colorado-based outdoor and activewear company, has announced a 23% increase in fourth-quarter revenue, marking the end of a challenging year. The company’s revenue for the period reached $2.6 billion, a significant jump from $2.1 billion in the same period the previous year. When adjusted for constant currencies, the increase stands at 19%.

The primary driver behind the revenue growth was VF’s four largest brands, namely Vans, The North Face, Timberland, and Dickies. Timberland, in particular, experienced a notable 21% rise in sales. Additionally, the company’s e-commerce channel performed strongly during the quarter, and the Asia-Pacific region witnessed a remarkable 71% surge in revenue, bouncing back from the negative impact of the Covid-19 pandemic.

In terms of net income for the fourth quarter, VF Corp reported $89.5 million, or $0.23 per diluted share, showcasing significant improvement from the loss of $483.8 million, or $1.22 per diluted share, in the same period the previous year.

Looking at the full fiscal year, VF Corp announced revenue of $9.2 billion, a decline of 12% (or 14% when adjusted for constant currencies) compared to the previous year’s $10.5 billion. This drop can be attributed to store closures and reduced consumer demand stemming from the pandemic. The active segment experienced the most significant decline, with a 15% decrease in revenue, including a 15% drop at Vans. The outdoor segment also witnessed an 11% decline, with The North Face’s revenue decreasing by 9%. However, the workwear segment managed to achieve a 7% increase in revenue, led by the Dickies brand with a 9% rise. Particularly, Dickies demonstrated significant progress in the Asia-Pacific region with a 36% increase in revenue.

Despite the challenges faced throughout the year, VF Corp’s digital revenue saw a remarkable 67% increase, highlighting the success of its e-commerce initiatives. However, annual wholesale revenue fell by 17%, and direct-to-consumer sales decreased by 5%.

In response to the results, VF Chairman, President, and CEO Steve Rendle expressed his satisfaction with the company’s performance throughout the fiscal year. Rendle credited the organization’s efforts to protect their employees and invest in growth as key factors behind their strong performance. Looking ahead, VF Corp anticipates total annual revenues to reach approximately $11.8 billion in fiscal 2022, indicating a 28% increase from fiscal 2021. This projection includes an expected contribution of $600 million from Supreme, the streetwear brand that VF Corp acquired earlier this year.

Useful links:
VF Corp official website
Vans website