VF Corp earnings plunge as Vans, U.S. wholesale segment struggle
VF Corp. announced on Tuesday fourth-quarter revenues fell 3% to $2.7 billion, capping off a rollercoaster year for the U.S. apparel group, which clocked annual revenues of $11.6 billion, down 2% on the prior-year.
The Denver, Colorado-based company said its international business grew 2% during the fourth quarter, with the EMEA region delivering its eighth consecutive quarter of growth in constant dollars. Greater China grew 3%, which led further sequential improvement in the APAC region. The Americas region was down 7%, primarily driven by reductions in the US wholesale business, the company added.
By brand, The North Face grew 12%, offset by a 14% dive in the company's Vans business, "illustrating the beginning of growth in APAC in constant dollars while the Americas remained negative," said VF. Timberland and Dickies reported 9% and 3% declines, respectively, while the company's other brands segment, namely Supreme, clocked 1% growth during the three months.
The company swung to a $214.9 million loss during the quarter, with full-year net income dropping to $118.6 million.
“We delivered quarterly results in line with our guidance, led by ongoing strength in The North Face and our international business, with accelerating momentum in Greater China. As a result, we were able to close the fiscal year with 10 out of 12 brands flat or growing revenue, and five up double digits, despite the challenging consumer environment," said Benno Dorer, Interim President and CEO,
"At the same time, we significantly improved our supply chain performance while the work to turn around Vans is progressing according to plan, as we navigate the known near-term challenges. Looking ahead to FY24, I am confident that we have the right plan to deliver improved operating performance and financial results, while we thoughtfully invest to deliver strong and consistent shareholder returns over the long term."
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