Home / Knowledge / News / Apparel/Garments / Revenue grows 23% at VF Corporation in Q1FY19
Revenue grows 23% at VF Corporation in Q1FY19
26
Jul '18
Courtesy: VF Corporation
Courtesy: VF Corporation
The revenue from continuing operations in VF Corporation has grown 23 per cent (up 21 per cent in constant dollars) to $2.8 billion in Q1 of fiscal 2019. Excluding the revenue from acquisitions, revenue grew 12 per cent (up 10 percent in constant dollars), driven by strength across VF’s global and direct-to-consumer platforms, active and work segments.

For the reported period, gross margin from continuing operations increased 70 to 50.3 per cent. While on adjusted basis, gross margin increased to 50.5 per cent. Earnings per share from continuing operations were $0.40. Adjusted earnings per share from continuing operations increased 62 per cent (up 56 per cent in constant dollars) to $0.43, including a $0.04 contribution from acquisitions.

The company's operating income on a reported basis was $231 million. On an adjusted basis, operating income climbed 57 per cent to $250 million, including $20 million contribution from acquisitions. Operating margin on a reported basis soared to 8.3 percent. Adjusted operating margin went up to 9.0 per cent. Adjusted operating margin, excluding acquisitions, elevated to 9.1 per cent.

"VF's first quarter results were strong, driven by continued broad based acceleration across our core brands and platforms," said Steve Rendle, chairman, president and chief executive officer. "We are executing well against our 2021 growth plan and continuing on our journey to reshape the portfolio and transform VF into a purpose-led, performance driven, consumer-centric organization focused on and committed to delivering superior returns to shareholders."

For fiscal 2019, revenue is expected to be in the range of $13.6 billion to $13.7 billion, reflecting an increase of 10 per cent to 11 per cent, and includes more than a $150 million negative impact from unfavourable foreign currency exchange rates relative to the prior outlook. This compared to the previous expectation of revenue between $13.45 billion and $13.55 billion, which reflected a 9 per cent to 10 per cent increase. By segment, revenue for Outdoor is expected to increase 6 per cent to 8 per cent, Active is expected to increase 13 per cent to 14 per cent, Work is expected to increase more than 35 per cent and Jeans is expected to be about flat compared to the prior year.

International revenue is now expected to increase between 12 per cent and 13 percent versus the previous expectation of a 13 per cent to 15 per cent increase. By geographic region, Europe revenue is expected to increase 12 per cent to 13 per cent, Asia Pacific revenue is expected to increase 14 per cent to 15 per cent and Americas (non-US) revenue is expected to increase 9 per cent to 10 per cent.

Direct-to-consumer revenue is now expected to increase between 11 per cent and 13 per cent versus the previous expectation of an 8 per cent to 10 per cent increase. Digital revenue is now expected to increase more than 30 per cent versus the previous expectation of more than 25 per cent increase.

The company expects gross margin to be approximate 51 per cent. Operating margin is likely to increase to about 13.4 per cent, versus the previous expectation of about 13.2 per cent. (RR)

Fibre2Fashion News Desk – India


Must ReadView All

New EU rules for a fairer online economy apply from Jul 12

E-commerce | On 11th Jul 2020

New EU rules for a fairer online economy apply from Jul 12

The European Commission recently published a set of resources to help ...

Pic: Inditex

Retail | On 11th Jul 2020

Inditex to invest €2.7 billion for 2020-2022 plan

Inditex, a Spanish fashion retailer, has announced that to accelerate ...

Pic: Shutterstock

E-commerce | On 11th Jul 2020

ING Bank launches fashion marketplace in Romania

ING Bank, the fourth-largest bank by assets in Romania, launched its...

Interviews View All

Hannah Lane, Redress

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Yash Agarwal, Hitansh Online

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Sunil Rathore, Lacoste India

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Rajesh Vig & Ritu Vig,

Rajesh Vig & Ritu Vig

Rajesh Vig and Ritu Vig, promoters of the kidswear brand Happy Feet,...

Cong Zheng,

Cong Zheng

The China Textile Machinery Association (CTMA) is a social-economic...

Fabio Grandis,

Fabio Grandis

Italian company Grandis SRL has been operating in the textile industry for ...

Steve McCullough & Marco Weichert, Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Steve McCullough & Marco Weichert
Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Functional Fabric Fair is a trade-exclusive event showcasing the latest...

Mark Paterson, Technical Absorbents Ltd

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Pranesh Sridharan & Berndt Koll, Lenzing

Pranesh Sridharan & Berndt Koll
Lenzing

The Lenzing Group produces Lenzing Lyocell and Modal cellulosic fibres of...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

Nisha Chanda, Whistling Woods International School of Fashion

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search