After a year of events that brought out the difficulties of Covid-19’s pandemic and acquired cult streetwear brand Supreme, Colorado-based Outdoor and activewear company Denver, VF Corp reported its fourth-quarter revenues of $2.6 billion, up 23 percent from $2.1 billion the same year in the previous year. The rise in constant currencies was 19%.
In the fourth quarter ended in March 2021, VF’s four largest brands – Vans, The North Face, Timberland, and Dickies – saw a 21% increase in sales, especially in Timberland.
The e-commerce channel of the business was also a strong pilot of growth over the quarter, as was the Asia-Pacific region, which reported a 71% increase in revenue over the previous year when the negative impact of Covid-19 was heavily influenced.
VF’s quarterly net income amounted to $89.5 million, or $0.23 per share diluted, compared to the fourth quarter of the preceding year’s loss of $483.8 million, or US$1.22 per share diluted.
The company’s revenue for the entire fiscal year was $9.2 billion, down from $10.5 billion the previous year by 12 percent or 14 percent in constant currencies. The effect of shop closures and reduced market demand due to the Covid-19 pandemic was expressed in this decrease. VF’s active division showed the highest declines, with revenues falling by 15 percent, including Vans’ 15 percent reduction and new acquisitions’ 3 percentage-point growth contribution. The company’s outdoor division also reported an 11 percent drop in sales, including a 9 percent fall at The North Face. On the other hand, VF’s workwear segment managed to increase its sales by seven percent, which led to a nine percent rise in the Dickies brand in the Asia Pacific, with a 36 percent rise in the region. Wholesale revenues of the group fell 17% year on year, while sales from direct to consumer dropped 5%, despite a 67% increase in digital revenue. The group’s full-year income decreased from 679.5 million dollars, or 1,70 per diluted share, for the previous year, by $407.9 million or $ 1,04 per diluted share.
“I can’t be more pleased with our organization’s fiscal 2021 navigation. We took major steps to protect our employees and business early in the year, while at the same time sustaining investments to drive our transformation and accelerate organic growth,” said VF President and CEO Steve Rendle in the release.
“We have taken courageous forward-looking steps at the same time to generate further development and value. As a consequence, we are this year in a strong position with a deep portfolio impetus,” added the Executive.
In the future, VF expects annual sales in the fiscal year 2022 to be about $11.8 billion, up 28 percent from the fiscal year 2021. This forecast includes an estimated contribution from the Supreme of $600 million.
MORE:
