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Published
Jul 26, 2015
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VF Corp's revenue still on the up

Published
Jul 26, 2015

VF Corp on Thursday announced its financial results for its second quarter ended July 4, 2015. The American group, which owns Vans, The North Face, Timberland and Lee (…), posted a 5% increase in revenue, to 2.484 billion dollars.

The North Face helped in the growth of revenue in VF Corp's second quarter - The North Face


Revenue rose 10 percent on a currency neutral basis driven by growth in our Outdoor & Action Sports and Jeanswear coalitions, and our international and direct-to-consumer businesses. On a reported basis, revenue increased 5 percent over the 2014 quarter.

Gross margin was 48.3 percent on a reported basis, down 10 basis points compared with the same quarter last year, but in line with expectations. Continued benefit from the shift of revenue mix toward higher margin businesses was more than offset by the impact of foreign currency.

Operating income on a reported basis was up 1 percent to $223 million compared with the same period in 2014. Operating margin on a reported basis declined 30 basis points to 8.9 percent due to the negative impact from changes in foreign currency rates.

“Our second quarter was another strong illustration of the ability of our global, diverse and powerful brands and platforms to deliver consistent, profitable growth,” said Eric Wiseman, VF Chairman and Chief Executive Officer. “Our strategy for continued growth and fueling our momentum is working.”

With Timberland, Vans, Lee, Wrangler, The North Face and 7 For All Mankind, the American group has a strong international presence. So much so that it generates more than a third of its sales outside of its domestic market. However, it has also been subject to the ongoing currency fluctuations. 
 

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