“2012 was another year of record revenues and profits for VF, with solid results across nearly every coalition, channel and geography,” said Eric Wiseman, VF Chairman and Chief Executive Officer. “Our performance is confirmation of our greatest competitive advantage – the diversity of our portfolio. It’s this strength, along with our focus on driving operational excellence into all areas of our business, that enables our brands to deliver the industry’s most innovative and meaningful products while deepening relationships with our customers and consumers, and consistently returning value to our shareholders.”
Full Year 2012 Review
Revenues increased 15 percent to a record $10.9 billion from $9.5 billion in 2011. On a constant dollar basis, full year revenues increased 17 percent. The Timberland acquisition accounted for 9 percentage points, or $907 million, of the revenue growth in 2012.
International revenues on a constant dollar basis were up 29 percent, of which Timberland accounted for 17 percent. Direct-to-consumer revenues were up 25 percent, with Timberland accounting for 15 percentage points of the growth. Full year revenue comparisons include a negative impact of about 1 percentage point from the sale of John Varvatos.
Gross margin rose by 75 basis points to a record 46.5 percent, compared with 45.8 percent in 2011, with improvements in nearly every business. The improvement in gross margin reflects the continued shift in our revenue mix towards higher margin businesses.
Operating income on an adjusted basis increased 17 percent to $1.5 billion in 2012. The Timberland acquisition accounted for 6 percentage points of the increase. On a GAAP basis, full year operating income rose 18 percent to $1.5 billion from $1.2 billion in 2011. Acquisition-related expenses for Timberland in 2012 and 2011 were $31 million and $33 million, respectively.
Adjusted operating margin was 13.8 percent compared to 13.5 percent in 2011. On a GAAP basis, operating margin was 13.5 percent versus 13.2 percent in 2011. Excluding Timberland, the full year operating margin was 14.4 percent in 2012 and 13.6 percent in 2011.
Net income on an adjusted basis rose 18 percent to $1.1 billion compared to $913 million in 2011. Adjusted earnings per share – which excludes a $0.32 gain from the sale of John Varvatos and $0.25 in Timberland acquisition-related expenses – increased 17 percent to $9.63 from $8.20 in 2011.
Textiles | On 24th May 2016
The Union government has withdrawn the notification on guidelines for ...
Textiles | On 24th May 2016
Ahead of the Budget next month, the All Pakistan Textile Mills...
Apparel/Garments | On 24th May 2016
E-commerce in Italy is expected to grow 17 per cent in 2016 to...
Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli
How was your experience of a collaborative stall at ITMA 2015? Please...
Global Organic Textile Standard
What benefits can MSMEs have from GOTS certification? What is the...
Sustainable fashion is not necessarily pocket- friendly. Are consumers...
<b><i>Urs Stalder, CEO, Sanitized AG, talks about the increasing use of...
<b><i>Kevin Nelson, Chief Scientific Officer, TissueGen discusses the...
Biovation II LLC
<b><i>Kerem Durdag, CEO, Biovation II LLC, provides an insight into future ...
Occasions Elegance Wear
It is believed that by early 19th century, Varanasi weavers had moved away ...
"We should not compare India and the West. There are things we do that...
Bridal couture created with rich Indian heritage, exquisite craftsmanship...
Apparel/Garments | On 23rd May 2016