VF Corporation reports 22% revenue increase in Q3 but lowers 2022 outlook
VF Corporation, owners of brands including Vans, Timberland, Dickies and Supreme, has reported financial growth for its third quarter ending 1 January 2022, with revenue increasing 22% to £2.6 billion ($3.6 billion), a 15% increase excluding acquisitions.
Active segment revenue increased 25%, including a 8% increase in the Vans brand revenue and a 17% point revenue growth contribution from acquisitions.
Outdoor segment revenue increased 23%, including a 28% increase in The North Face brand revenue. Work segment revenue also saw a slight increase - up 6%, including a 4% increase in the Dickies brand revenue.
International revenue increased 19%, including a a 26% increase from Europe, a 6% decrease from Greater China and a 8% increase from Mainland China.
The Group's direct-to-consumer revenue saw increases of 30%, with digital revenue increasing 21%.
Operating income from continuing operations on a reported basis reached £478 million ($643 million) on an adjusted basis, including a £40 million ($54 million) contribution from acquisitions.
Steve Rendle, VF's Chairman, President and CEO, commented: "We delivered strong double-digit top and bottom line results and returned about $500 million in cash to shareholders in the third quarter, all of which has been achieved amidst continuing macro headwinds.
"The broad-based momentum across our brands is testament to the resilience of our diversified portfolio model, which has enabled us to deliver a strong quarter and reaffirm our full year earnings outlook in a challenging environment. I am confident that VF remains well-positioned for continued, profitable, long-term growth."
For the full year fiscal year 2022 outlook, the company now expects revenue to be approximately £8.8 billion ($11.85 billion), down from a prior view of about £8.8 billion ($12 billion) despite an approximate £446 million ($600 million) contribution from the Supreme brand.
VF Corporation attributed the the shortfall to VF’s Active segment, as well as slowdowns in international revenue, direct-to-consumer and the digital business.