VF revenues jump 104 percent, raises guidance

First quarter revenue at VF Corporation increased 104 percent or 96 percent in constant currency to 2.2 billion dollars.

The company said in a statement that excluding the impact of acquisitions, revenue increased 90 percent or 83 percent in constant dollars driven by VF’s largest brands and the EMEA and North American regions, which experienced a significant negative impact from Covid-19 in the prior year period.

Operating results of VF Corporation
Gross margin for the quarter increased 360 basis points to 56.5 percent, while on an adjusted basis, gross margin increased 260 basis points.

Operating income on a reported basis was 203 million dollars and on an adjusted basis operating income increased 164 percent or 160 percent in constant dollars to 148 million dollars. Operating margin on a reported basis was 9.2 percent, while adjusted operating margin increased 2820 basis points.

The company added that earnings per share were 39 cents on a reported basis. On an adjusted basis, earnings per share increased 148 percent or 144 percent in constant dollars to 27.

VF raises full year guidance
For full year fiscal 2022, VF said revenue is now expected to be at least 12 billion dollars, reflecting growth of at least 30 percent, including an approximate 600 million dollars contribution from the Supreme brand. This compares to the previous expectation of approximately 11.8 billion dollars, reflecting growth of approximately 28 percent.

By segment, revenue for outdoor is now expected to increase between 24 percent and 26 percent versus the previous expectation of a 23 to 25 percent increase; revenue for active is now expected to increase between 37 percent and 39 percent versus the previous expectation of a 34 to 36 percent increase; revenue for work is now expected to increase between 16 and 18 percent versus the previous expectation of a 10 to 12 percent increase.

The company further said that international revenue is expected to increase between 25 percent and 27 percent.

By geographic region, in the EMEA region, revenue is expected to increase between 29 percent and 31 percent. In the Asia Pacific region, revenue is expected to increase between 18 percent and 20 percent. And, in the Americas (non-US) region, revenue is expected to increase between 28 percent and 30 percent.

The company added that direct to consumer revenue is now expected to increase between 39 percent and 41 percent versus the previous expectation of 38 percent and 40 percent, including digital revenue growth of between 29 percent and 31 percent.

Adjusted gross margin is expected to exceed 56 percent, which represents an estimated increase of more than 270 basis points.

Adjusted earnings per share is expected to be at least 3.20 dollars, including an approximate 25 cents contribution from the Supreme brand. This compares to the previous expectation of approximately 3.05 dollars.