VF Corporation sales lower in China
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Apparel manufacturing and retailing giant VF Corporation has reported a 30-per-cent increase in sales in China in its third quarter, to December 28.
The huge increase helped fuel a global 6-per-cent rise in revenues to US$3.4 billion, excluding its troubled workwear business for which it has announced a strategic review, with its potential sale in the offing.
The company’s activewear segment improved by 8 percent, with the Vans brand up by 12 percent; and the outdoor segment by 3 percent including 8-per-cent growth by The North Face.
Group direct-to-consumer revenue rose by 7 per cent and digital revenue by 16 percent.
Operating income from continuing operations increased 11 percent and adjusted operating income from continuing operations by 14 percent when the workwear business was excluded. “Our third-quarter performance was strong and our year-to-date results are at the high end of our long-term growth objectives,” said VF Corporation chairman Steve Rendle.
“Despite a mixed holiday season in the US, we’re on track to deliver solid performance and are well-positioned for continued growth and value creation in the fiscal year 2021.”
Questions & Answers
Q.What was the total global revenue for VF Corporation in its third quarter, excluding the workwear business?
What was the total global revenue for VF Corporation in its third quarter, excluding the workwear business?
VF Corporation reported a global revenue of US$3.4 billion for its third quarter. This figure represents a 6-per-cent rise in revenues when the workwear business is excluded from the calculation.
Q.Which specific brand contributed most to the growth in the activewear segment?
Which specific brand contributed most to the growth in the activewear segment?
Within the activewear segment, the Vans brand showed strong performance, increasing its sales by 12 percent. This contributed to the overall 8 percent improvement seen across the entire activewear segment.
Q.How did the company's direct-to-consumer and digital sales channels perform during the quarter?
How did the company's direct-to-consumer and digital sales channels perform during the quarter?
The company saw a 7 per cent increase in its direct-to-consumer revenue. Digital revenue experienced even stronger growth, rising by 16 percent during the third quarter.
Q.What is the company's current outlook for continued growth in the upcoming fiscal year?
What is the company's current outlook for continued growth in the upcoming fiscal year?
VF Corporation anticipates delivering solid performance despite a mixed US holiday season. The company believes it is well-positioned for continued growth and value creation in the fiscal year 2021.
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