For its second quarter, VF Corporation reported revenue of 3.1 billion dollars, declined 4 percent and increased 2 percent in constant dollars with big four brands down 5 percent or up 1 percent in constant dollars and the balance of the portfolio up 4 percent or 13 percent in constant dollars.
For the first six months, revenue of 5.3 billion dollars, was down 1 percent and up 4 percent in constant dollars with big four brands down 2 percent or up 3 percent in constant dollars and the balance of the portfolio increasing 6 percent or by 14 percent in constant dollars.
Commenting on the company’s Q2 trading and outlook, Steve Rendle, chairman, president and CEO of VF said: "VF’s balanced performance in Q2 demonstrates the resiliency of our brand portfolio against a more disrupted global marketplace."
"We will remain focused on the things we can control and will continue leveraging VF’s unique business model and competitive strengths to drive consistent, sustainable and profitable growth," Rendle added.
Highlights of VF’s Q2 and H1 results
The company said, The North Face revenue of 1 billion dollars, rose 8 percent or 14 percent in constant dollars, while Vans revenue of 1 billion dollars, declined 13 percent or 8 percent in constant dollars.
For the first half, The North Face revenue of 1.4 billion dollars, was up 15 percent or 21 percent in constant dollars and Vans revenue of 1.9 billion dollars, was down 10 percent or 6 percent in constant dollars.
Gross margin was 51.4 percent, down 230 basis points and adjusted gross margin of 51.5 percent, was down 240 basis points. First half gross margin of 52.4 percent, was down 240 basis points; while adjusted gross margin of 52.6 percent, was down 250 basis points
Loss per share of 31 cents, was down 126 percent; while adjusted EPS of 73 cents, was down 34 percent. Loss per share of 45 cents for the first half, was down 129 percent; and adjusted EPS of 81 cents, was down 41 percent.
VF revises FY23 earnings outlook
VF added that the company is maintaining its constant dollar revenue outlook but revising its earnings outlook to reflect increased negative impacts from foreign currency fluctuations as well as heightened inventory levels and increased promotional activity in the marketplace.
Total VF revenue is expected to be up 5 percent to 6 percent in constant dollars, unchanged from the previous outlook.
Adjusted gross margin down 100 to 150 basis points, compared to the previous outlook of down 50 basis points, adjusted operating margin of 11 percent, compared to the previous outlook of approximately 12 percent.
VF expects adjusted EPS to be in the range of 2.40 dollars to 2.50 dollars, versus 3.18 dollars in the prior year and compared to the previous outlook of 2.60 dollars to 2.70 dollars.
VF’s board of directors declared a quarterly dividend of 51 cents per share, reflecting a 2 percent increase over the previous quarter’s dividend be payable on December 20, 2022, to shareholders of record at the close of business on December 12, 2022.