The American clothing and footwear firm VF Corporation has seen its Q2 revenue rise by 5 per cent or 7 per cent in constant dollars to touch US $ 3.4 billion.
On an adjusted basis, the revenue saw an increase of 6 per cent or 8 per cent in constant dollars.
And what’s led to these numbers!
Two of its largest brands and international and direct-to-consumer platforms have been instrumental in bringing this surge.
Speaking further on the same, Steve Rendle, Chairman, VF’s President and CEO, remarked “We are happy with the strength of our Q2 and first half results, driven by our two largest brands and our international and direct-to-consumer platforms.”
He said that achieving good numbers despite uncertain geopolitical environment gives VF the confidence of continuing the good show in the second half as well.
The company’s gross margin for Q2 increased 90 basis points to touch 52.9 per cent, while on an adjusted basis, gross margin increased 90 basis points to reach 53.1 per cent.
The operating income was US $ 579 million dollars, while on an adjusted basis, it rose by 7 per cent or 10 per cent in constant dollars to clock US $ 606 million.
The operating margin, on a reported basis, increased 20 basis points to 17.1 per cent, with the adjusted operating margin rising by 40 basis points to touch 17.9 per cent.
VF believes that for full fiscal 2020, revenue in all probability will touch around US $ 11.8 billion, which will be a rise of 6 per cent or 8 per cent in constant dollars excluding the effect of acquisitions and divestitures.