China and the online channel: that’s how VF Corp beats expectations in the 2nd fiscal quarter, which closed on September 26th. The US group, which controls brands such as Vans, The North Face, Timberland and Dickies, expects the fiscal year that will close in March 2021, to be down by 14%.
VF Corp beats expectations
In the quarter going from July to September, VF Corp.’s revenue decreased by 18% at current rates and 19% at constant rates, reaching 2.6 billion USD. Each percentage were better than the analysts’ expectations cited by Footwear News, as those had predicted the final revenue for the wuarter to be of 2.5 billion USD. Vans’ revenue was down by 11% for the quarter, while the drop for The North Face was of -26%, -26% for Timberland and +18% for Dickies. If the 1st quarter is also taken into account, then the results are: Vans -30%, The North Face -31%, Timberland -31% e Dickies +2%. The revenue drop for VF’s semester is equal to -30%.
Says the CEO
“The results since the start of the year have gone beyond our expectations for all brands, driven by the digital channel and China: two of our growth pillars”, confirmed Steve Rendle, CEO of VF Corp.”We are starting to see signs of stability and strength for our activity.
Even though uncertainty still remains, our investments in digital transformation translate in a short-term push and an improved capacity to emerge even better from the situation”. The Denver-based group expects the fiscal year 20/21 to close with revenue of at least 9 billion euro: down by about 14%”.