World Footwear

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VF continues with revenue growth

Jul 28, 2015 United States
VF continues with revenue growth
Second quarter revenue with steady performance (up by 5% current currency; 10 % currency neutral). Group raises full year earnings outlook
“Our second quarter was another strong illustration of the ability of our global, diverse and powerful brands and platforms to deliver consistent, profitable growth”, stated Eric Wiseman, VF Chairman and Chief Executive Officer, adding: “Our strategy for continued growth and fueling our momentum is working: Keep the consumer at the center of everything we do; deliver innovative and relevant product; and focus our execution and discipline to maximize long-term growth opportunities.”

During the second quarter, revenue rose by 10% on a currency neutral basis driven by growth in the Outdoor & Action Sports and Jeanswear coalitions, and in both the international and direct-to-consumer businesses. On a reported basis, revenue increased 5% over similar period in 2014.

Gross margin was 48.3% on a reported basis, down 10 basis points compared with the same quarter last year, but in line with the group's expectations.

Second quarter revenue for the Outdoor & Action Sports coalition was up by 16% on a currency neutral basis (up by 9% on a reported basis) driven by similar growth rate in both its wholesale and direct-to-consumer businesses.

Second quarter currency neutral revenue for The North Face brand rose 10% (up by 6% reported), including a 20% increase (up by 15% in reported terms) in its direct-to-consumer business. By region, The North Face brand’s revenue continues its dynamic performance in the Americas and in Europe.

Currency neutral revenue for the Vans brand in the second quarter was up by 23% (up by 17% reported) including a 25% increase (up by 21% reported) in direct-to-consumer sales and 22% growth (up by 15% in reported terms) in wholesale sales. Revenue growth in America and Asia Pacific reached two digits rate.

Second quarter revenue for the Timberland brand was up 10% on a currency neutral basis (up by 2% reported) including a 17% increase (up by 9% reported) in its wholesale business.

Full year revenue expectations are unchanged, with an 8% increase on a currency neutral basis (up 3% reported). Revenue for the Outdoor & Action Sports coalition is expected to increase at a low double-digit currency neutral percentage rate (up mid single-digit reported).

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