US apparel firm VF Corp's April-July net income expands to $324 mn

04 Aug '21

2 min read

Pic: VF Corporation/ The North Face

VF Corp, a US-based leader in branded lifestyle apparel and footwear, has reported 104 per cent revenue growth to $2.2 billion (Q1 FY21: $1.1 billion) in first quarter (Q1) FY22 ended July 3, 2021, driven by VF's largest brands and the EMEA and North American regions. The company’s net income for the quarter rose to $324.2 million (loss: $285.6 million).

Total costs and operating expenses for the quarter was $1.9 billion ($1.3 billion), while operating income escalated to $202.8 million (loss: $246.8 million).

"Our teams delivered an outstanding first quarter, powering VF back to pre-pandemic revenue levels while driving an earnings recovery ahead of our expectations,” Steve Rendle, VF's chairman, president and CEO at VF Corporation, said in a press release.

Revenues of outdoor segment jumped 81 per cent to $617.7 million ($341.2 million), whereas active segment climbed 128 per cent to $1.3 billion ($571.3 million), according to the company. Moreover, work segment’s revenues in Q1 FY22 surged 69 per cent to $274.7 million ($162.4 million).

By region, international revenues grew 84 per cent, with Europe experiencing a surge of 126 per cent, and Great China revenues up 19 per cent. Revenues from US grew 125 per cent and EMEA region revenues gained 125 per cent in the three-month period.

The American apparel company further added that revenues from direct-to-consumer channel in the first quarter increased 97 per cent, whereas digital revenues expanded 25 per cent against Q1 FY21.

Assuming no material deterioration to the company's current business operations due to Covid-19, governmental actions and regulations, VF Corporation has updated its outlook and now expects revenues to improve 30 per cent to $12.0 billion in FY22.

“We continue to see broad-based momentum across the portfolio, supporting an increase to our fiscal 2022 outlook for each of our largest brands. Though the first quarter is a relatively small portion of our total year, this strong start reinforces my confidence in our ability to accelerate growth through fiscal 2022 and beyond,” Rendle concluded.

Fibre2Fashion News Desk (JL)

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