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We're off to a strong start to the year – VF Chairman
01 May '10
5 min read
Operating income increased 19%, with a significant increase in margins to over 17% in the quarter.
Sportswear: Despite a slight decline in revenues, Sportswear operating income and margins each showed substantial improvement over those of the prior year's quarter. The performance of our Nautica brand continues to improve in both our wholesale and retail businesses. Kipling brand revenues in the U.S. increased 33% in the quarter, reflecting the successful launch of a new, exclusive program with Macy's.
Contemporary Brands: Revenues of our Contemporary Brands coalition, which consists of the 7 For All Mankind, John Varvatos, Splendid and Ella Moss brands rose 16%, with last year's acquisition of the Splendid and Ella Moss brands contributing an incremental $14 million to revenues in the quarter compared with the 2009 period. 7 For All Mankind brand revenues rose in the quarter, with direct-to-consumer revenues more than doubling in the period.
Operating income and margins declined from those of the prior year's quarter due to two factors. First, last year's first quarter included a $3.9 million favorable resolution of a 2008 tax and duty matter. In addition, investments in new 7 For All Mankind retail stores reduced margins in this seasonally low period for revenues; these new stores are expected to contribute to significantly stronger margins in upcoming quarters.
Imagewear: Trends in our Imagewear coalition continue to improve as economic conditions have gradually improved. As anticipated, revenues were down 2% in the first quarter, but we expect a return to growth beginning in the second quarter in this coalition. Operating income and margins remained stable in the quarter.
Click here for more details.
Sportswear: Despite a slight decline in revenues, Sportswear operating income and margins each showed substantial improvement over those of the prior year's quarter. The performance of our Nautica brand continues to improve in both our wholesale and retail businesses. Kipling brand revenues in the U.S. increased 33% in the quarter, reflecting the successful launch of a new, exclusive program with Macy's.
Contemporary Brands: Revenues of our Contemporary Brands coalition, which consists of the 7 For All Mankind, John Varvatos, Splendid and Ella Moss brands rose 16%, with last year's acquisition of the Splendid and Ella Moss brands contributing an incremental $14 million to revenues in the quarter compared with the 2009 period. 7 For All Mankind brand revenues rose in the quarter, with direct-to-consumer revenues more than doubling in the period.
Operating income and margins declined from those of the prior year's quarter due to two factors. First, last year's first quarter included a $3.9 million favorable resolution of a 2008 tax and duty matter. In addition, investments in new 7 For All Mankind retail stores reduced margins in this seasonally low period for revenues; these new stores are expected to contribute to significantly stronger margins in upcoming quarters.
Imagewear: Trends in our Imagewear coalition continue to improve as economic conditions have gradually improved. As anticipated, revenues were down 2% in the first quarter, but we expect a return to growth beginning in the second quarter in this coalition. Operating income and margins remained stable in the quarter.
Click here for more details.
VF Corporation
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