VF Corporation has announced the financial results of the first quarter ended on 27 June 2020.
Revenue from continuing operations fell by 48 per cent to reach US $ 1.1 billion. The active segment revenue decreased 54 per cent, including a 52 per cent decrease in Vans® brand revenue.
The outdoor segment revenue slumped by 44 per cent, including a 45 per cent decrease in The North Face® brand revenue.
The work segment revenue fell by 19 per cent, including a 16 per cent decrease in Dickies® brand revenue.
The only positive aspect in this result was an increase of 78 per cent in digital revenue.
Overall, its international revenue decreased by 39 per cent. While the revenue from Europe was down by 48 per cent, the Greater China revenue was flat.
The company’s direct-to-consumer revenue fell by 37 per cent. Even the second quarter’s revenues are expected to be down less than 25 per cent.
Notably, VF Corporation has Vans®, The North Face®, Timberland® and Dickies® brands.
VF is built for this moment, which is what gives us continued confidence and optimism,” said Steve Rendle, Chairman, President and CEO of the company.
The company’s every store in the APAC region, including Mainland China, re-opened during the first quarter while in the EMEA region, 90 per cent stores re-opened during the same period. However, most of the stores remained closed in the UK.
In North America, its 75 per cent of all retail stores were open at the end of the first quarter. Additional stores have re-opened since the end of the quarter, partially offset by over 120 retail stores that have since temporarily re-closed due to localised resurgence of COVID-19 outbreaks and resulting Government action and public health advisories.
About its vendors, the company said that the majority of VF’s supply chain is currently operational. The suppliers are following health advisories and Governmental instructions which can result in product delays. The company is working with its suppliers to minimise disruption.