VF posts Q2 profit, sales decline by 6 percent

Second quarter revenue at VF Corporation of 2.8 billion dollars, was down 6 percent, The North Face declined by 3 percent or 4 percent in constant dollars and Vans declined by 11 percent versus the same quarter last year.

However the company reported earnings per share of 52 cents and adjusted EPS of 60 cents.

Commenting on the second quarter update, Bracken Darrell, VF’s president and CEO, said in a statement: "Our results in the quarter met our expectations and reflect a sequential and broad-based improvement in year-on-year trends. At the same time, we made further progress on our four Reinvent priorities and we are on track to reach our previously announced 300 million dollars savings target by the end of FY25."

VF’s gross margin for the quarter of 52.2 percent, improved 120 basis points, while operating margin of 9.9 percent was down 210 basis points and adjusted operating margin was down 60 basis points.

For the third quarter, the company forecasts revenue in the range of 2.7 billion dollars to 2.75 billion dollars, down 1 percent to down 3 percent year-over-year in reported dollars, while adjusted operating income is expected to range between 170 million dollars to 200 million dollars.

The company's board of directors has authorised a quarterly per share dividend of 9 cents.