American firm VF Corporation posts revenue of $3 bn in Q2 FY24

Source：CHINA SPORTING GOODS FEDERATIONRelease time：2023-11-06Clicks：

Article From：fibre2fashion

VF Corporation, a leading US-based company in branded lifestyle apparel and footwear, has reported its second-quarter fiscal 2024 (Q2 FY24) results, with overall revenue standing at $3 billion, a 2 per cent decline compared to the same period last year. When measured in constant currency, the decline deepens to 4 per cent.

The company's 'big four' brands showed a decrease in revenue of 3 per cent, or 5 per cent in constant currency. However, the balance of the portfolio saw an increase of 6 per cent (4 per cent in constant currency).

Notably, the North Face recorded significant growth with revenue reaching $1.1 billion, up 19 per cent (17 per cent in constant currency). On the contrary, Vans faced a decline in revenue, dropping to $0.7 billion, down 21 per cent (23 per cent in constant currency), VF Corporation said in a media release.

The gross margin for Q2 stood at 51.3 per cent in Q2 FY24, a slight decrease of 10 basis points compared to Q2 FY23, while the adjusted gross margin was also 51.3 per cent, down 20 basis points. The operating margin was reported at 12 per cent, showing an impressive increase of 1,490 basis points. However, the adjusted operating margin declined by 30 basis points.

Loss per share for the quarter was $1.16, worsening from the $0.31 in Q2 FY23. Adjusted earnings per share were reported at $0.63 compared to $0.73 for Q2 FY23.

Wholesale revenue for the quarter was down 1 per cent (3 per cent in constant dollars), primarily affected by an 11 per cent downturn in the Americas. Direct-to-consumer (DTC) revenue declined by 3 per cent but increased by 10 per cent when excluding Vans (9 per cent in constant dollars).

Geographically, the Americas faced an 11 per cent decrease in revenue, or a 3 per cent decrease when excluding Vans. International business saw an uptick of 10 per cent (5 per cent in constant dollars), led by Greater China with an 8 per cent increase (14 per cent in constant dollars) and Europe, Middle East, and Africa (EMEA) with an increase of 14 per cent (6 per cent in constant dollars).

"Our transformation plan, Reinvent, will improve our brand-building and execution while addressing with urgency our top priorities of improving North America, accelerating the Vans turnaround, significantly reducing our fixed costs and reducing leverage. We are excited about the long term, starting with these first major steps toward improving our near-term performance, positioning us to return to growth and generate shareholder value,” said Bracken Darrell, President and CEO.