Lifted by continuing strength in its Outdoor & Action Sports coalition, VF Corp. reported a 9.9 percent increase in first-quarter profits and a 6.5 percent boost in quarterly revenues.
Both the top and bottom lines exceeded analysts’ consensus expectations. The Greensboro, N.C.-based apparel giant boosted its full-year earnings and revenue guidance.
In the three months ended March 29, net income reached $297.2 million, or 67 cents a diluted share, up from $270.4 million, or 60 cents, in the comparable period last year. Analysts on average had expected EPS of 63 cents.
Revenues rose to $2.78 billion from $2.61 billion, with sales at the Outdoor & Action Sports group, the company’s largest, ahead 14 percent to $1.57 billion. Within the outdoor group, Vans revenues were up 20 percent and were the highest of any brand in the VF portfolio.
The North Face sales rose 14 percent, with its direct-to-consumer component ahead almost 30 percent, while Timberland sales rose 12 percent.
Strength in outdoor was offset somewhat by weakness in the Jeanswear coalition, where sales fell 4 percent, to $690.3 million, and were down at a high-single-digit rate in the Americas as department and midtier stores struggled with the denim classification. Similarly, Contemporary coalition sales were off 5 percent to $98 million as Seven For All Mankind struggled against a “challenging premium denim market,” the company said.
International sales were up 11 percent, 10 percent in constant currency, while direct-to-consumer sales were up 16 percent, including double-digit gains in all regions.
Gross margin checked in at 49.4 percent of sales, up 130 basis points from a year ago and the highest measure for any quarter in VF’s history. VF said margins increased in all of its coalitions.
“VF’s first-quarter results reflect the continued strength of our brands and our global business platforms,” said Eric Wiseman, chairman, president and chief executive officer of VF. “Led by outstanding performance from the Outdoor & Action Sports coalition, which had balanced growth across all channels and geographies, we delivered strong growth in revenue and profitability.”
In updated guidance, VF now expects full-year EPS of about $3.06, 1 cent higher than the top of its previous range of between $3 and $3.05, and revenue expansion at the higher end of its previous guidance for an increase of between 7 and 8 percent.
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye