American apparel firm VF Corp's revenue expands 23% in second quarter

25
Oct '21

Pic: VF Corporation/ The North Face

VF Corp, a US-based leader in branded lifestyle apparel and footwear, has reported a 23 per cent revenue growth to $3.2 billion in the second quarter (Q2) of FY22 ended October 2, 2021, compared to the same period of previous fiscal. However, the company’s performance was impacted by the resurgence of COVID-19 lockdowns in key sourcing countries resulting in manufacturing capacity constraints during Q2.

“As we move through the halfway point of our fiscal year, I remain encouraged by the underlying momentum across the portfolio, and the broad-based nature of this strength gives me confidence that we are driving the right strategy to accelerate growth in the quarters ahead,” Steve Rendle, VF's chairman, president and CEO, said in a press release.

The American apparel firm said that the majority of its supply chain is currently operational, and suppliers are complying with local public health advisories and governmental restrictions causing isolated product delays.

During Q2, VF Corp’s no stores were closed in North America and EMEA region. However, in the APAC region, including Mainland China, 5 per cent of stores remained closed at the beginning of the Q2, but nearly all stores reopened at the end of the quarter, the company added.

Operating income for the three-month period expanded to $558.5 million ($319.9 million). Net income for Q2 FY21 surged to $464.0 million ($256.7 million).

Revenues from outdoor segment surged 31 per cent to $1.5 billion ($1.1 billion), while active segment recorded 16 per cent rise to $1.4 billion ($1.2 billion), according to the company. Work segment in the second quarter increased 18 per cent to $0.3 billion ($0.2 billion).

In its outlook for FY22, the outerwear manufacturer expects revenue to rise 30 per cent to $12.0 billion, with an approximate $600 million contribution from the Supreme brand. International revenues are anticipated to accelerate between 24-26 per cent during the year.

“While the recovery has been impacted by further pandemic-related disruptions, we continue to see accelerating demand signals across our business, and our ability to reaffirm our fiscal 2022 revenue and earnings outlook is a clear testament to the resiliency and optionality of our model,” Rendle concluded.

Fibre2Fashion News Desk (JL)

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