VF Profit Rises on Strength in The North Face and Timberland
The apparel and footwear company’s revenue fell 4% to $2.7 billion in the second quarter
- VF posted a second-quarter net income of $285.3 million, up from $189.8 million in the same quarter a year ago.
- The company’s second-quarter revenue fell 4% to $2.7 billion, beating analyst expectations of $2.67 billion.
- Vans global direct-to-consumer sales returned to growth in the quarter for the first time in nearly five years.
VF posted a higher profit in the second quarter, driven by steady growth at The North Face and Timberland, alongside a turnaround in direct sales at Vans.
The apparel and footwear company on Wednesday posted net income of $285.3 million, or 71 cents a share, compared with $189.8 million, or $48 cents a share, in the same quarter a year ago.
Adjusted earnings were 70 cents a share. According to FactSet, analysts were expecting 54 cents a share.
Revenue fell 4% to $2.7 billion, but not by as much as analysts forecasted, which was for a drop to $2.67 billion. The company benefited from a 4% rise in revenue from The North Face brand, its largest, as well as 4% growth at Timberland. Vans revenue fell 10% in the quarter.
The company noted that Vans’ global direct-to-consumer sales returned to growth in the quarter for the first time in nearly five years.
Chief Executive Bracken Darrell said that the performance for the quarter came in ahead of guidance across key metrics, crediting the company’s product lines and execution.
“The North Face and Timberland continued to deliver consistent growth, and Altra grew more than 40%, all powered by bold product design and innovation and brand storytelling that are resonating with our consumers,” Darrell said.
VF reaffirmed its guidance for the year.