VF Corp struggles with sales in the 3rd quarter, but beats the forecasts for profits. Timberland struggles and loses more ground than all other brands. “Our results for the 3rd quarter were well above expectations”, says Steve Randle, president and CEO of the group that also controls Vans, The North Face and, from recently, Supreme. Mr. Rendle claimed to be confident for the fiscal year 21/22.
VF closed the period (going from October to December 26th) with a revenue of 2.97 billion USD, or -6% at current rates and -8% at constant ones, on yearly basis. The average estimate by analysts cited by Reuters was of 3 billion. Ratified profits per share were of 93 cents, while analysts expected it to be 90 cents. Revenue from digital sales increased by 53%, but that wasn’t enough to balance out the low in-store sales.
Specifically, the retail channel suffered in key markets such as the USA and Europe, battered by the restrictions imposed by the pandemic. As far as the brands go, at constant rates, the results for the 3rd quarter were: Vans -8%. The North Face -2%, Timberland -17%, Dickies +7%.
The first 9 months
The group closed its first 9 months of the fiscal year with 6.66 billion USD in revenue (-21% at current rates).
The brands’ results were: Vans -23%, The North Face -18%, Timberland -25%, Dickies +4%. Thanks to the 3rd quarter results, VF Corp improved its forecast for the entire year. The group now expects revenue to be between 9.1 and 9.2 billion USD (Refinitiv IBES’ estimate is of 9.19 billion), including 125 million from Supreme.
Overall, the result would be of a yearly decrease of revenue contained between –12% and -13%.
Ratifies profits per share are expected to come in at 1,30 USD, 6 cents below the expectations of Wall Street and -51% from the previous year.