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VF Jeanswear operating margins rise in Q1
23 Apr '08
3 min read
Total revenues rose 18% with double-digit growth in both our domestic and international businesses. The North Face, Vans, Kipling and Napapijri brands each posted double-digit revenue gains in the quarter. Operating income rose 26%, with operating margins rising a full percentage point to 16.6%.
We look forward to double-digit top line growth and higher operating margins in 2008 as we continue to benefit from our investments in brand building and infrastructure.
Jeanswear:
Revenues of our global Jeanswear coalition, which includes our Wrangler, Lee and Riders brands, declined 6% during the quarter. Our international jeans revenues rose 6% reflecting the benefit of foreign currency translation. We achieved strong growth in Asia, Mexico and Latin America, with double-digit revenue increases on a constant-currency basis in each market.
Domestic jeanswear revenues declined 13% due to a very challenging retail environment that impacted our business in both the mass market and mid-tier channels of distribution and the shift in timing of certain product programs in this year's quarter versus the 2007 period. Jeanswear operating margins rose in the quarter, despite a slight decline in operating income.
Top line comparisons should begin to improve in the second quarter and continue through the balance of the year due to newly added programs in both our international and domestic businesses and continued strength in Asia, Mexico and Latin America.
Sportswear:
Total revenues of our Sportswear coalition, which includes our Nautica and John Varvatos brands as well as the Kipling brand in North America, declined 11% in the quarter. Our Kipling and John Varvatos businesses achieved higher revenues in the quarter. As anticipated, Nautica brand revenues declined, primarily due to a customer's decision last year to reduce their assortment of Nautica products, as well as lower sales in off-price channels.
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We look forward to double-digit top line growth and higher operating margins in 2008 as we continue to benefit from our investments in brand building and infrastructure.
Jeanswear:
Revenues of our global Jeanswear coalition, which includes our Wrangler, Lee and Riders brands, declined 6% during the quarter. Our international jeans revenues rose 6% reflecting the benefit of foreign currency translation. We achieved strong growth in Asia, Mexico and Latin America, with double-digit revenue increases on a constant-currency basis in each market.
Domestic jeanswear revenues declined 13% due to a very challenging retail environment that impacted our business in both the mass market and mid-tier channels of distribution and the shift in timing of certain product programs in this year's quarter versus the 2007 period. Jeanswear operating margins rose in the quarter, despite a slight decline in operating income.
Top line comparisons should begin to improve in the second quarter and continue through the balance of the year due to newly added programs in both our international and domestic businesses and continued strength in Asia, Mexico and Latin America.
Sportswear:
Total revenues of our Sportswear coalition, which includes our Nautica and John Varvatos brands as well as the Kipling brand in North America, declined 11% in the quarter. Our Kipling and John Varvatos businesses achieved higher revenues in the quarter. As anticipated, Nautica brand revenues declined, primarily due to a customer's decision last year to reduce their assortment of Nautica products, as well as lower sales in off-price channels.
Click here to view more:
VF Corporation
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