VF Corporation has announced financial results for its second quarter ended July 2, 2016. In the period under consideration, the company’s revenue increased by 1 per cent to US $ 2.4 billion.
As per the company release, gross margin was up slightly compared to the second quarter of last year at 48.1 per cent on a reported basis. Operating income on a reported basis plunged 3 per cent to US $ 211 million compared with the same period last year. Operating margin on a reported basis declined 40 basis points to 8.6 per cent.
VFC’s international revenue in the reporting period surged 5 per cent. Revenue in Europe was up 5 per cent and in the Asia-Pacific region zoomed 4 per cent. Revenue in the Americas (non-U.S.) region was up 7 per cent (up 20 per cent currency neutral). The international business represented 35 per cent of total VF second quarter sales, compared with 34 per cent in last year’s same period.
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“Our second quarter results were in line with our expectations, despite a challenging environment with mixed economic and currency conditions around the world,” said Eric Wiseman, VF Chairman and Chief Executive Officer, adding, “Earlier this year, we said we would actively manage our portfolio of brands and we’re doing just that. We expect to deliver on our current 2016 outlook and, as a result of the actions we are taking, be even better positioned to provide the strong long-term returns our shareholders have come to expect.”
