VF Corp revenues drop to $2.1bn in Q1 FY24
Additionally, the group's revenues rose by 3% in international markets but declined by 2% in EMEA
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American apparel and footwear company VF Corp has revealed that its revenues declined 8% to $2.1bn (£1.5bn) for the first quarter ending 1 July 2023, with its big four brands down 11%.
It reported that Vans revenues fell 22% to $737.5m (£576m), while Timberland and Dickies revenues decreased by 6% and 20% to $253.8m (£198m) and $136.6m (£106m) respectively.
However, it did see its North Face brand’s revenues rise 12% to $538.2m (£420m) and its remaining brand revenues jump 7% to $420.2m (£328m).
The retailer revealed direct-to-consumer revenues dipped 3%, while wholesale revenues fell by 12%.
Meanwhile, the group’s international revenues rose by 3% despite a 2% decline in the EMEA region.
It also confirmed a loss per share down 2% to $0.15 (£0.12) ; adjusted loss per share $0.15 (£0.12) compared with Q1’FY23 adjusted earnings per share of $0.09 (£0.07)
Looking ahead, the group expects revenues to be flat for the year, reflecting “ongoing weakness” in its wholesale business and a “longer than anticipated” turnaround for Vans.
Bracken Darrell, president and CEO, said: “I am honoured to lead this great company into the next chapter of its history. I am passionate about building brands through a design-and-innovation lens and creating unique and differentiated products, immersive storytelling and elevated experiences for consumers.
“VF has a portfolio of globally recognized, iconic brands, a deeply embedded purpose and impressive talent, all of which gives me every confidence we have all the necessary ingredients to unlock the company’s significant potential and return to delivering strong, sustainable and profitable growth which will translate to elevated shareholder returns.”
Matt Puckett, CFO, added: “While our Q1 performance is not reflective of our standards, we achieved our earnings target in the quarter. We remain focused on improving our operational execution, although it will take time for our revenue performance to benefit from actions that are underway. We are well positioned to advance our key priorities this year with an emphasis on increasing operating earnings through improved gross margins, generating healthy cash flow and reducing debt, all of which lead to a strengthened financial position.”
