Key points:
- VFC shares are trading at a gain of 4.5%, despite missing on top and bottom lines
- Strong demand for The North Face drove revenue growth
- Flat Vans sales weighed on earnings growth
Shares of VF Corp (NYSE: VFC) are trading at a modest gain of 3.5% despite the company slightly missing the mark on revenue and earnings for the fourth quarter. It’s been a mixed bag for retailer earnings over the last week, with high-end brands such as Canada Goose still beating expectations on resilient demand for luxury goods, despite inflation weighing on disposable income. VF Corp, parent label of popular demands such as The North Face, Dickies, Vans and Timberland, announced its Q1 earnings postmarket on Thursday, just missing expectations.
The fashion label reported first quarter EPS of $0.45, just missing the $0.47 expected by analysts. Revenue came in at 2.82B, again falling just shy of the $2.83B consensus. Despite the close miss, VF Corp shares are currently trading at a gain of 4.5% in early hours trading. It appears that a revenue increase of 9% was enough to sway buyers this morning, with a keen focus on rising sales from The North Face.
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With the most growth, The North Face recorded a 24% increase in revenue, up from $621M in 2021 to $770M this year. The next in line was Timberland with 9% growth, followed by Dickies at 7%. However, sales in Vans came out flat compared to Q121. In a welcomed note, VF Corp noted that for the most part, its supply chain remains fully operational, affected only slightly by China’s no-nonsense lockdown policy.
Steve Rendle, Chairman and CEO of VF stated:
“I am pleased with the progress we have made advancing our strategic priorities while successfully navigating another eventful year”
Adding…
We largely delivered on the commitments we made at the outset of fiscal 2022 by achieving broad-based growth across our family of brands. A portion of our active segment did not achieve its potential. We understand the issues, we have the right people in place, and we know we will do better.”