• Home
  • Executive
  • Management
  • VF's Q1 reported revenue rise 23 percent, updates FY19 outlook

VF's Q1 reported revenue rise 23 percent, updates FY19 outlook

By Prachi Singh

loading...

Scroll down to read more

Management

VF Corporation, for its first quarter ended June 30, 2018, reported revenue increase of 23 percent or 21 percent in constant dollars to 2.8 billion dollars, including a 249 million dollars revenue contribution from the Williamson-Dickie, Icebreaker and Altra acquisitions. Excluding acquisitions, the company said, revenue increased 12 percent or10 percent in constant dollars), driven by broad-based strength across VF’s international and direct-to-consumer platforms and active and work segments.

“VF's first quarter results were strong, driven by continued broad based acceleration across our core brands and platforms,” said Steve Rendle, VF’s Chairman, President and CEO in a statement.

Hover over the graph to learn more.

Highlights of VF’s first quarter results

The company’s gross margin improved 70 basis points to 50.3 percent and on an adjusted basis, gross margin increased 90 basis points to 50.5 percent. Adjusted gross margin, excluding acquisitions, increased 170 basis points to 51.3 percent. Operating income on a reported basis was 231 million dollars, on an adjusted basis, it increased 57 percent to 250 million dollars, including an 20 million dollars contribution from acquisitions. Operating margin on a reported basis increased 130 basis points to 8.3 percent. Adjusted operating margin increased 200 basis points to 9.0 percent. Adjusted operating margin, excluding acquisitions, increased 210 basis points to 9.1 percent.

Earnings per share were 0.40 dollar on a reported basis. On an adjusted basis, earnings per share increased 62 percent or 56 percent in constant dollars to 0.43 dollar, including a 0.04 dollar contribution from acquisitions.

VF announces adjusted full year outlook

For fiscal year 2019, on an adjusted basis, VF expects revenue to be in the range of 13.6 billion dollars to 13.7 billion dollars, reflecting an increase of 10 percent to 11 percent, and includes more than a 150 million dollars negative impact from unfavourable foreign currency exchange rates relative to the prior outlook. This compares to the previous expectation of revenue between 13.45 billion dollars and 13.55 billion dollars, which reflected a 9 percent to 10 percent increase.

By segment, revenue for outdoor is expected to increase 6 percent to 8 percent; revenue for active is expected to increase 13 percent to 14 percent; revenue for work is expected to increase more than 35 percent; and, revenue for jeans is expected to be about flat compared to the prior year.

International revenue is now expected to increase between 12 percent and 13 percent versus the previous expectation of a 13 percent to 15 percent increase. By geographic region, Europe revenue is expected to increase 12 percent to 13 percent (previously 13 percent to 15 percent); Asia Pacific revenue is expected to increase 14 percent to 15 percent (previously 15 percent to 17 percent); and, Americas (non-U.S.) revenue is expected to increase 9 percent to 10 percent (previously 10 percent to 12 percent).

Direct-to-consumer revenue is now expected to increase between 11 percent and 13 percent versus the previous expectation of an 8 percent to 10 percent increase and digital revenue is now expected to increase more than 30 percent versus the previous expectation of a more than 25 percent increase.

Gross margin is still expected to approximate 51 percent. Earnings per share is now expected to be in the range of 3.52 dollars to 3.57 dollars, reflecting an increase of 12 percent to 14 percent, and includes about a 0.06 dollar negative impact from unfavourable foreign currency exchange rates relative to the prior outlook. This compares to the previous expectation of 3.48 dollars to 3.53 dollars, which reflected an increase of between 11 percent and 13 percent.

VF’s board of directors declared a quarterly dividend of 0.46 dollar per share, payable on September 20, 2018 to shareholders of record on September 10, 2018.

Picture:Facebook/The North Face

MULTIMEDIA
VF Corporation