Revenue from continuing operations for the U.S. headquartered manufacturer of footwear and outdoor apparel decreased 48% to US$1.1 billion for the first quarter of the Group’s fiscal year 2021.
Revenue for VF Corp’s Active segment decreased 54% in the quarter, including a 52% decrease in Vans’ brand revenue, while Outdoor segment revenue declined 44%, including a 45% decrease in The North Face brand revenue. Work segment revenue decreased 19% in the period, including a 16% decrease in Dickies brand revenue. Revenue from international operations decreased 39% in the first quarter, with Europe down 48%, while Greater China revenue was flat, despite a 5% increase for Mainland China in the period. Direct-to-consumer revenue decreased 37%, but digital revenue was up 78% in the quarter.
Gross margin from continuing operations decreased 340 basis points to 52.9% in the quarter, and loss from continuing operations on a reported basis was US$247 million. The Group ended the first quarter of fiscal 2021 with inventories up 2%, approximately US$2.8 billion of cash and short-term investments in addition to US$2.23 billion remaining under VF’s revolving credit facility; the Group also returned US$187 million to shareholders through dividends. VF said the majority of its supply chain is currently operational, with suppliers complying with local public health advisories and governmental restrictions, which can result in product delays.
For the second quarter of its fiscal 2021, VF expects revenues to be down less than 25% and full-year fiscal 2021 free cash flow is still expected to exceed US$600 million.
Reference:
VF Corp revenue down 48% in first quarter – International Leather Maker. (n.d.). Retrieved August 04, 2020, from https://internationalleathermaker.com/news/fullstory.php/aid/8752/VF_Corp_revenue_down_48_25_in_first_quarter.html
