On the one hand, in the USA, VF Corporation may well celebrate their business performance at the end of the latest financial quarter. They must take into consideration, though, that one of the group’s brand is not in its best shape. On the other hand, in China, Stella Holding show off (almost proudly) benefits coming from augmenting their own productivity in Vietnam, and reducing it in Beijing. Let us compare two footwear giants: there we go with their financial statements.
The quarter went beyond expectations, therefore upgrading business forecast about 2019. In fact, in the first three months of the new financial year, VF Corporation overall revenues reached 2.3 billion US dollars, therefore increasing by 6%. Vans (+20%, picture right) and The North Face (+9%) have been driving such positive trend. In contrast, Timberland went down a negative trend, as revenues dropped by 1%: quite a dull performance. Despite such flaw, VF expect the financial year to prove rewarding. At the end of 2019/2020 business year, Vans turnover will supposedly increase by 10 to 12%. The North Face are likely to do slightly less: +7 to 8%. As for Timberland outlook, the brand will expectedly enjoy a limited boost, as revenues will predictably rise by 1 to 3%.
In the six-month-period, ended on June 30, Stella Holding (picture left) revenues amounted to around 750.6 million US dollars, therefore going up by 1.7%. Most of all, sneakers have been driving such brilliant accomplishment. Stella expect net profits, after tax, to increase by 70% at least, compared to 2018 first six months. “Such enhancement – they pointed out in a press release – mostly hangs on a mild improvement of production efficiency” and, in addition, “on a consistent expansion of our new manufacturing plant based in Vietnam”. On top of that, “our further relocating production capacity from China to South East Asia is proving successful as well”. At the same time, wrapped up Stella, “we keep monitoring the situation between China and the United States”.
Pictures taken from institutional websites