Denver, Colorado-based apparel and footwear company VF Corporation continues to address the economic impact of the Covid-19 pandemic, resulting in a net second quarter ending September 26, 2020. Announced a profit of $ 256.7 million, or $ 0.62 per share. Friday.
Therefore, VF Corp’s revenue was well below the $ 649 million reported by the company in the year-ago quarter, or $ 1.55 per share. However, MarketWatch reports that the Group’s adjusted earnings per share is $ 0.66, well above FactSet analysts’ forecast of $ 0.48.
The company, which owns the Vans, The North Face and Timberland brands, saw quarterly revenue of $ 2.6 billion, down 18% from $ 3.2 billion in the year-ago quarter. This decline was primarily due to store closures and reduced consumer demand due to the coronavirus pandemic and measures taken to stop its spread.
The group’s outdoor segment suffered the most during the quarter, with revenues down 24%, while the active segment fell 15%. Meanwhile, in the working segment, revenue increased 14%.
VF sales in the US fell 21% in the quarter. International revenues fell by 15%. This reflects a 21% increase, primarily in mainland China, a 16% decrease in Europe, a 38% decrease in the non-US US market, and a 2% increase in the Asia Pacific region.
By channel, global consumer direct revenues declined 17% in the quarter, while consumer digital revenues increased significantly by 44%.
VF’s total revenue in the first half of the fiscal year decreased from $ 5.2 billion in the year-ago quarter to $ 3.7 billion. The company’s net loss in the first half was $ 28.9 million, down from $ 698.2 million in revenue a year ago.
“Year-to-date results have exceeded internal expectations for all brands, driven by two of our key growth pillars: Digital and China,” said Stee Blendle, Chairman, President and CEO of VF. I commented on the release. “We are beginning to show signs of stability and strength in every aspect of our business and support our decision to raise dividends and provide a balanced financial outlook for this year.”
Looking to the future, VF expects to report at least $ 9 billion in annual revenue. This is a year-on-year decrease of approximately 14% on an adjusted basis. The forecast predicts that the company will achieve low-single-digit growth in the second half, primarily driven by its return to growth in the fourth quarter. The Group’s annual adjusted earnings per share is expected to be at least $ 1.20.
VF seeks to escape the economic challenges of the coronavirus crisis, and the company is busy restructuring its business structure and accelerating growth in its digital and Chinese businesses. As part of these efforts, Steve Murray was recently appointed as the new president of The North Face, and Winima became VF president of Greater China.
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