Vans and Timberland parent reports rise in FY22 revenues despite slow Q4
VF Corporation, the parent company of Vans and Timberland, has announced that its revenues for the full year 2022 were up 27% in constant currency, partially offset by a slowdown in revenue in the fourth quarter, as sales showed a 10% decrease in its APAC region "primarily" due to COVID lockdowns.
For the fourth quarter and fiscal year ended April 2, 2022 VF Corporation recorded the following results.
- Revenues £2.2 billion (up 12% in constant dollars)
- The North Face revenue £641 million, up 26% in constant dollars
- Vans revenue £801 million, flat, up 2% in constant dollars
- Timberland revenues £349 million, up 12% in constant dollars
- Operating income increases 30% to £180 million, on an adjusted basis
- EMEA Region revenues of £708 million up 22% in constant currency
Fiscal year 2022 results:
- Revenues of £9.5 billion up 27% in constant currency
- Operating income increased 109% to £1.2 billion on an adjusted basis
- EMEA Region revenues of £2.7 billion, up by 30% in constant currency
- APAC Region revenues £303 million, a decrease of 10% from £341 million 2021
The company said that the zero tolerance policy in China in response to COVID-19 had impacted some specific raw material suppliers within the country, although the majority of VF's supply chain is "currently operational".
For the full year 2023, with no additional significant COVID-19 related lockdowns or significant worsening in global inflation rates, VF expects revenues to be up at least 7%.
Steve Rendle, Chairman, President and CEO of VF, said: "I am pleased with the progress we have made advancing our strategic priorities while successfully navigating another eventful year. We largely delivered on the commitments we made at the outset of Fiscal 2022 by achieving broad-based growth across our family of brands. A portion of our active segment did not achieve its potential. We understand the issues, we have the right people in place and we know we will do better.
"Our performance is testament to the incredible breadth and depth of talent across our organisation and our teams continue to be highly resourceful, committed and passionate. We will continue to thoughtfully invest in our brands and value-enhancing strategic growth opportunities and I am confident VF has a long runway for sustained, profitable and broad-based growth ahead.”