VF Corporation, a global leader in design, manufacture, marketing and distribution of branded lifestyle apparel, footwear and accessories, has reported that its first quarter revenue is in line with last year at US $ 2.8 billion, up 2 per cent on currency neutral basis.
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In the press release issued by the company, it mentioned that gross margin was 48.2 per cent on a reported basis, down 80 basis points as against same period last year. Similarly, operating income plunged 15 per cent to US $ 336 million in the reporting quarter. Operating margin declined 220 basis points to 11.8 per cent. Earnings per share was US $ 0.61 per share as against US $ 0.67 per share during the same period last year.
In addition to this, international revenue for VF was up 1 per cent (up 4 per cent currency neutral) in the first quarter. Revenue in Europe surged 1 per cent (up 2 per cent currency neutral) and in the Asia-Pacific region was up 2 per cent (up 6 per cent currency neutral). Revenue in the Americas (non-U.S.) region however declined by 1 per cent (up 12 per cent currency neutral).
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Commenting on the results, Eric Wiseman, Chairman & Chief Executive Officer of VFC said, “Our first quarter results demonstrate the ability of our diversified business model to perform as expected in an inconsistent environment. By leveraging our strengths – driving innovation into the marketplace, connecting with consumers and operating with financial discipline – we are on track to deliver results consistent with our 2016 outlook, while also delivering on our commitment to shareholders.”
