VF Corp rounds off challenging year with 23% rise in Q4 revenue
Following an eventful year, during which the Denver, Colorado-based outdoor and activewear company navigated the difficulties of the Covid-19 pandemic and acquired cult streetwear brand Supreme, VF Corporation has reported fourth-quarter revenue of $2.6 billion, up 23% from $2.1 billion in the same period in the previous year. In constant currencies the increase was 19%.
In the fourth quarter ended March 2021, revenue growth was driven by VF’s four largest brands – Vans, The North Face, Timberland and Dickies – with Timberland, in particular, having posted a 21% rise in sales.
The company’s e-commerce channel was also a strong growth driver during the quarter, as was the Asia-Pacific region, which posted a 71% rise in revenue compared to the prior-year period, when it was strongly affected by the negative impact of Covid-19.
VF’s quarterly net income came to $89.5 million, or $0.23 per diluted share, compared to a loss of $483.8 million, or $1.22 per diluted share, in the previous year’s fourth quarter.
The company’s revenue for the full fiscal year totaled $9.2 billion, down 12%, or 14% in constant currencies, from $10.5 billion in the previous year. This decrease reflected the impact of store closures and lower consumer demand related to the Covid-19 pandemic.
The strongest declines were seen in VF’s active segment, where revenue fell 15%, including a 15% decrease at Vans and a 3 percentage point growth contribution from new acquisitions. The company’s outdoor segment also posted a revenue decline of 11%, including a 9% decrease at The North Face.
VF’s workwear segment, on the other hand, managed a 7% increase in its revenues, led by a 9% rise at the Dickies brand, which made particular progress in Asia Pacific, posting a 36% increase in the region.
The company’s annual wholesale revenue fell 17%, while direct-to-consumer sales decreased 5%, despite a 67% rise in digital revenue.
Full-year earnings at the group were $407.9 million, or $1.04 per diluted share, down from $679.5 million, or $1.70 per diluted share, in the previous year.
“I could not be more pleased with how our organization navigated fiscal 2021. Early in the year we took important actions to protect our people and the enterprise, while maintaining investments to drive our transformation and accelerate organic growth,” said VF chairman, president and CEO Steve Rendle in a release.
“At the same time, we took bold, forward-looking actions to spark additional growth and value creation. As a result, we are exiting this year in a position of strength with broad based momentum across the portfolio,” added the executive.
Looking forward, VF expects annual revenues to total approximately $11.8 billion in fiscal 2022, up 28% from fiscal 2021. This prediction includes an expected contribution of $600 million from Supreme.
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