VF Corp Q1 revenues surge to $2.3bn

VF Corporation has revealed its Q1 revenues surged 3% to $2.3bn (£1.9bn) boosted by its performance in EMEA and the Americas.

The group saw revenues at its North Face brand jump 31% to $0.5bn which helped to offset a 7% fall in sales at its primary brand Vans to $0.9bn.

Operating income on an adjusted basis decreased by 48% to $77.5m (£63.5m) during the period. Gross margin was also 53.9%, down 260 basis points, while adjusted gross margin was 54.1%, down 260 basis points.

It also confirmed earnings per share (EPS) was $(0.14), down 137%, and Adjusted EPS was $0.09, down 68%.

VF added it is maintaining its currency adjusted FY23 outlook while revising its earnings outlook on a reported dollar basis to reflect “ongoing negative impacts from foreign currency fluctuations” and now expects adjusted EPS of $3.05 (£2.50) to $3.15 (£2.58), implying 4% to 7% growth versus the prior year on a constant dollar basis.

Steve Rendle, chairman, president and CEO of VF, said: “We delivered solid top-line results in Q1, ahead of our initial expectations, led by strong consumer engagement with our outdoor, streetwear and active brands amidst a softer consumer environment and inflationary pressures. Importantly, we are maintaining our operating outlook for FY23, a testament to the resiliency of our purpose-built family of brands.

“I remain impressed by our teams, whose passion, perseverance and execution continue to drive our success. While uncertainty persists across geographies and marketplaces from ongoing macro-economic headwinds, we are focused on the things that we can control and will continue our strategic investments to ensure long-term, sustainable and profitable growth.”