VF Corporation boosts profitability in first quarter and lifts full-year sales guidance
The group, owner of Vans, Kipling and The North Face among other labels, ended the first three months of fiscal 2018 with a net income of 160.4 million dollars (137 million euros). Sales went up 23.8% in the same period.
VF Corporation shows growth momentum. The company, owner of Vans, Kipling and The North Face among other labels, finished the first quarter of fiscal 2018 (ended on June 30) with a 46% net income rise. Sales posted double-digit growth and were up 23.8%, which has led the group to raise its full-year forecasts. Investors have rewarded the company’s performance, as shares rose 4.5% in premarket trading after results beat Wall Street’s estimates for earnings per share and revenues.
The company ended the first quarter with a profit of 160.4 million dollars (137.9 million euros), compared to 109.8 million dollars (94.4 million euros) in the same period of 2017. VF’s revenues reached 2.78 billion dollars (2.39 billion euros) between April and June 2018.
By segments, the active division (which included Vans, Kipling and Napapijri among others) posted sales of 1.14 billion dollars (977.6 billion euros) in the first quarter, up 25%. Denim labels, like Wrangler and Lee, registered a turnover of 603.7 million dollars (519.1 million euros), a 2.7% rise.
VF Corporation earned 160.4 million dollars (137.9 million euros) between April and June 2018
The work segment grew at the highest speed, increasing its sales a 114% year-on-year to 442.6 million dollars (380.6 million euros), due mainly to the addition of Dickies to the brand portfolio. Outdoor, which included Timberland, The North Face and Altra, grew by 6% to 568.6 million dollars (488.9 million euros).
VF has raised its full-year guidance after experiencing a better-than-expected performance in the first quarter. The group expects to end the fiscal year with sales ranging from 13.6 billion and 13.7 billion dollars (11.7 billion and 11.78 billion euros), which would mean a year-on-year increase of 10% to 11%.
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