VF Corporation, the parent company of brands such as Timberland, The North Face, Vans, Eastpak, Jansport, Kipling, Smartwool and others, has issued fantastic figures for the second quarter of its 2014 financial year. Total sales rose by 8 percent to $2.4 billion compared with last year’s period. The outdoor & action sports division which comprises TNF, Timberland, Vans and other labels, rose by 16 percent. The North Face grew by 11 percent, Vans by 21 percent and Timberland by 19 percent in wholesale terms. For the group as a whole, turnover increased by double-figures both in Europe and in the Asia-Pacific region; and international business soared by 18 percent.
Our strong second quarter results, led by our Outdoor & Action Sports coalition, put us right in line with our full-year outlook and long-term growth commitments.”
Eric Wiseman, chief executive, VF Corporation
While operating profits jumped by 9 percent to $220 million, the gross margin went down by 10 points to 48.4 percent. This drop was in large part due to currency effects, but also from overstocking in the group’s jeanswear business, where the company sees opportunities for improvement.
Strong in outdoor and action sports
The outdoor & action sports division managed to boost sales 16 percent to $1.3 billion. The division hit double-figure increases in all critical regions. The North Face (+11 percent) took advantage of a 37 percent increase in its own retail operations. TNF was up in the high single-figures in Europe, but slipped to a mid single-figure rate in Asia-Pacific. Vans, on the other hand, continued its success story and grew in the high teens in the Americas and Europe, but by 40 percent in Asia-Pacific. Timberland improved by 19 percent globally, with a 25 percent increase in the Americas and with a mid-teen growth rate in Europe and Asia.