VF Corp. reported better-than-expected first-quarter earnings and sales amid rising demand for its top brands and raised its guidance for the year.
The company, whose brands include Timberland, The North Face, Vans, and Dickies, said that its net income totaled $324.2 million in the quarter ended July 3, up from $285.6 million in the year-ago period. Adjusted earnings were $0.27 a share. Analysts had been expecting adjusted earnings of $.11 a share.
Total sales surged to $2.19 billion from $1.08 billion a year earlier. Analysts were expecting revenue of $2.17 billion.
Revenue at VF's four largest brands all increased by at least 61% compared to last year. The strongest performing brand was Vans, whose sales surged 110%. The North Face’s sales rose 93%, while Timberland’s increased 70%. Dickies’ sales were up 61%.
Supreme, which the company acquired https://chainstoreage.com/timberland-parent-company-makes-21-billion-acquisition late last year, contributed $145.7 million in sales during the quarter.
“Our teams delivered an outstanding first quarter, powering VF back to pre-pandemic revenue levels while driving an earnings recovery ahead of our expectations,” said Steve Rendle, VF’s chairman, president and CEO. “We continue to see broad-based momentum across the portfolio, supporting an increase to our fiscal 2022 outlook for each of our largest brands. Though the first quarter is a relatively small portion of our total year, this strong start reinforces my confidence in our ability to accelerate growth through fiscal 2022 and beyond.”
The company addressed potential supply chain disruptions in its quarterly release. The majority of the VF’s supply chain is currently operational, but that suppliers are complying with local public health advisories and governmental restrictions which has resulted in isolated product delays.
“The resurgence of COVID-19 lockdowns in key sourcing countries has resulted in additional manufacturing capacity constraints during the first quarter,” VF stated. “Additionally, port delays, equipment availability and other logistics challenges have contributed to product delays. VF is working with its suppliers to minimize disruption and is employing expedited freight as needed.”
In June, the company completed the sale of its Occupational Workwear business. The Occupational Workwear business to a subsidiary of Redwood Capital Investments, a diversified holding company.
[Read More: VF Corp. in deal to sell nine workwear brands]
VF increased its outlook for the year to revenues of at least $12 billion, reflecting revenue growth of 30%, compared to its previous forecast to $11.8 billion, with growth of 28%.
At the end of the quarter, VF operated 1,364 stores.