VF Corporation has announced the financial results for the third quarter ended September 30, 2017.
Accelerated momentum across the company’s international and direct-to-consumer platforms and its outdoor and action sports and workwear businesses positively impacted the results in the reporting quarter.
VF Corporation owns and runs brands like Vans, The North Face, Timberland, Wrangler and Lee.
During the third quarter, the firm noted a 5 per cent increase in its revenue to settle at US $ 3.5 billion (up 4 per cent in currency neutral terms). The gross margin improved 100 basis points (bps) to 50.1 per cent.
However, the apparel firm reported a 20 per cent decline in its operating income to US $ 484 million.
VF Corporation’s outdoor & action sports revenue increased 8 per cent and Vans brand’s revenue soared 28 per cent during the quarter.
The company’s international revenue surged 13 per cent, including 18 per cent growth in Europe and 9 per cent growth in China. Its direct-to-consumer revenue increased by 18 per cent with digital revenue up 38 per cent.
Steve Rendle, President and Chief Executive Officer of the company said, “Based on the strength of our third quarter performance and the stronger growth trajectory we see for the remainder of 2017, we are again increasing our full year outlook and making additional growth-focused investments aimed at accelerating growth and value creation into 2018 and beyond.”
The 2017 revenue is expected to grow by 6 per cent to US $ 12.1 billion.
