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VF Corp, the owner of brands such as Vans, The North Face and Timberland, has seen its revenues dip by 2% to $11.6bn (£9.4bn) in FY23 amid a “challenging” consumer environment.
North Face performed better than expected however, with sales up by 11% to $3.6bn (£2.9bn) in the full-year period. For the fourth quarter, its sales were up by 12% to $859.5m (£694m).
Ultimately, VF Corp’s group results were in part hindered by Vans’ performance, where sales fell by 12% to $3.7bn (£3bn) in the year, and by 14% to $857m (£692) in Q4.
In total, international sales were up by 2% in Q4, largely led by the group’s performance in EMEA and China, though were down by 2% overall in the year. In the Americas, sales were down by 2% in the full-year and by 7% in the last quarter.
Looking ahead, the group said it was “confident” it would deliver an improved performance and results in FY24, adding that it would be a “year of progress” for the group.
Benno Dorer, interim president and CEO, said: “We delivered quarterly results in line with our guidance, led by ongoing strength in The North Face and our international business, with accelerating momentum in Greater China.
“As a result, we were able to close the fiscal year with 10 out of 12 brands flat or growing revenue, and five up double digits, despite the challenging consumer environment.”
He added: “At the same time, we significantly improved our supply chain performance while the work to turn around Vans is progressing according to plan, as we navigate the known near-term challenges.
“Looking ahead to FY24, I am confident that we have the right plan to deliver improved operating performance and financial results, while we thoughtfully invest to deliver strong and consistent shareholder returns over the long term.”
Matt Puckett, CFO, said: “FY24 will be a year of progress as initiatives underway begin to drive results. We will be laser-focused on execution amidst an increasingly difficult near-term environment, particularly in US wholesale.
“We expect to improve our operating performance and financial results, highlighted by increasing gross margins, EBITDA growth, and strong cash generation, all of which supports our plan to de-lever. I remain confident VF is well positioned to return to sustainable and profitable growth beginning in FY24.”
