VF Corporation today reported the financial results of its first quarter ended March 30, 2013. The figures include a 2 percent rise in VF’s total revenues and a 3 percent decrease in the corporation’s jeanswear revenues.
Financial data for the complete corporation (in the first quarter of 2013)
Revenues rose 2 percent to $2.6 billion compared with the same period of 2012. According to the company, these were “driven by strength in the Outdoor & Action Sports, international and direct-to-consumer businesses”. However, the sale of John Varvatos in April 2012 negatively impacted VF’s revenue growth comparison by 1 percentage point in the first quarter.
Gross margin improved to 48.1 percent. This performance, which includes improvements in nearly every coalition, compares with 45.7 percent in the same period of 2012.
Operating income on an adjusted basis grew 13 percent to $360 million in the first quarter compared with $319 million in the same period of 2012. Adjusted operating margin was 13.8 percent compared with 12.5 percent in the first quarter of 2012.
Net income on an adjusted basis grew by 25 percent to $273 million from $219 million in the first quarter of 2012.
Outdoor & Action Sports
The revenues of the Outdoor & Action Sports segment were up 10 percent in the quarter to $1.4 billion with balanced growth across both the U.S. and international markets.
Revenues for The North Face rose 6 percent with low single-digit growth in both the Americas and Europe regions, and continued strong double-digit growth in Asia.
The Vans brand closed the first quarter with a 25 percent increase in revenues including over 20 percent growth in the Americas and Asia regions, and more than a 30 percent increase in Europe. Vans posted double-digit revenue increases in both its wholesale and direct-to-consumer channels.
Timberland's revenues increased by 2 percent in the first quarter with mid-teen growth in Asia and a mid single-digit increase in the Americas region. In Europe, the brand experienced a mid single-digit decline in revenues.
VF’s Jeanswear revenues decreased 3 percent to $718 million, including slightly lower sales in the Americas region. Jeanswear revenues in Europe declined at a mid single-digit rate. In Asia, Jeanswear revenues declined by a low double-digit rate.
Revenues for the Wrangler brand were down 2 percent with strength in its U.S. Western and Latin American businesses offset by a slight decline in its U.S. mass.
Lee’s first quarter revenues were down 6 percent. VF stated this was “due to continued challenging dynamics in the mid-tier channel in the U.S. and difficult macroeconomic conditions in Europe”.
However, the enterprise recorded a 29 percent increase in Jeanswear operating income to $143 million. Operating margin reached 20 percent in the quarter with improvements in both Wrangler and Lee.
The full financial results release can be found here: http://www.vfc.com/news/press-releases?nws_id=DB427BB6-7382-B086-E043-A740E3EAB086