• Linkdin
Data-Driven Analysis to Identify the Existing and Upcoming Trends in Polyester Fiber Market. Request Report down-aerrow Data-Driven Analysis to Identify the Existing and Upcoming Trends in Polyester Fiber Market. Request Report down-aerrow
         Data-Driven Analysis to Identify the Existing and Upcoming Trends in Polyester Fiber Market. Request Report down-aerrow Data-Driven Analysis to Identify the Existing and Upcoming Trends in Polyester Fiber Market. Request Report down-aerrow
Maximize your media exposure with Fibre2Fashion's single PR package  |   Know More

VF Imagewear registers solid growth

16 Jul '08
5 min read

Vans retail revenues also grew strongly in the quarter, with an increase of about 20%. Our Napapijri, Kipling, Eastpak and Eagle Creek brands also achieved solid growth in the quarter. We opened a total of 12 stores during the quarter, with new stores added for our Vans, The North Face and Napapijri brands.

Outdoor operating income rose 11% in the quarter reflecting the strong volume gains. Operating margins declined in the quarter due to the seasonality of our growing owned retail businesses and the impact of investments in such areas as new retail store openings and advertising.

We expect 15%-plus revenue growth for our Outdoor coalition in the second half of this year, with solid gains anticipated both domestically and internationally. We are looking forward to exceptionally strong growth in our owned retail businesses as we benefit from the new store openings of the past year and a continuation of positive same store sales trends. We continue to expect higher operating margins in Outdoor for the full year with solid improvement in the second half driven by the seasonality of our retail businesses, particularly in the fourth quarter.

Jeanswear:
As anticipated, the revenue performance of our global Jeanswear coalition, which includes our Wrangler, Lee and Riders brands, improved in the second quarter compared with first quarter results. Total Jeanswear revenues declined 1% in the current quarter, with double-digit gains in our international jeans business offset by lower revenues in our domestic jeans business.

International jeans revenues rose 14% due to the benefit of foreign currency translation and reflecting strong growth in Asia and Mexico, with double-digit revenue increases on a constant-currency basis in each market. Domestic jeanswear revenues declined 7%; our mass market business was essentially flat in the quarter, while our Lee and Western Specialty businesses declined.

Jeanswear operating income and margins declined in the quarter. During the quarter we took the opportunity to take actions to improve our cost structure, which impacted operating margins in the current quarter by 50 basis points. In addition, last year's second quarter operating margin included the gain from the sale of a business, which benefited that quarter's operating margin by 110 basis points.

In terms of the second half, we are encouraged by the early success in such new programs as Wrangler Comfort Series jeans and Lee Comfort Fit casuals and jeans, which should contribute to more stable revenue comparisons in the second half of the year. We continue to expect Jeanswear to post strong, stable margins in the mid-teens on a full year basis.

Click here to view more:

VF Corporation

Leave your Comments

Esteemed Clients

Woolmark Services India Pvt. Ltd.
Weitmann & Konrad GmbH & Co. KG
VNU Exhibitions Asia
USTER
UBM China (Shanghai)
Tuyap Tum Fuarcilik Yapim A.S.
TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
X
Advanced Search