VF Corporation Q3 revenues up 7% to US$3.5 billion

U.S. apparel giant VF Corp reports third quarter revenues rise 7 percent to $3.5 billion driven by strong growth in its Outdoor & Action Sports coalition and in the international and direct-to-consumer businesses. Operating income increased 9 percent to $633 million in the third quarter, compared with $580 million in the same period of 2013. Operating margin was 18 percent compared with 17.6 percent in the third quarter of 2013. Earnings per share increased 11 percent to $1.08 per share compared with $0.97 per share during the same period last year.

Revenues for the Outdoor & Action Sports coalition increased 11 percent in the quarter to $2.2 billion with double-digit growth in the Americas, European and Asia Pacific regions.

Vans® brand revenues were up 12 percent with continued, strong growth across all regions as well as in the brand’s wholesale and direct-to-consumer businesses. Revenues in the Americas region were up at a high single-digit rate, impacted by a shift in timing of shipments; fourth quarter revenues are expected to grow at a high-teen percentage rate. In Europe, Vans® brand revenues were up at a mid-teen percentage rate in the quarter, and by nearly 40 percent in the Asia Pacific region.

Contemporary Brands coalition revenues were down 5 percent, to $99 million, reflecting continuing challenging consumer trends in women’s contemporary apparel and premium denim.

International revenues in the third quarter grew 9 percent, or 10 percent excluding the impact of foreign currency. Revenues in Europe increased 8 percent and in the Asia Pacific region were up 18 percent, including 19 percent growth in China. Reported revenues in the Americas (non-U.S.) region were up 4 percent (up 10 percent in constant currency). International revenues were 41 percent of total VF third quarter sales in 2014 compared with 40 percent in the same period of 2013.

Vans Ink Art Show 2014