A softer consumer environment, inflationary pressure and COVID lockdowns in China contributed to a rare first-quarter loss for outdoor apparel and footwear giant VF Corp.
The parent company of The North Face, Timberland, Vans and other brands reported a net loss of $56 million, or $0.15 per share, in the quarter ended July 2, down from earnings of $324.2 million in the year ago.
Revenue rose 3% to $2.26 billion. The company’s best performing brand during the quarter was The North Face, where sales jumped 31% to $481.1 million. In January, VF tapped Nike veteran Nicole Otto as the division’s global brand president.
Sales at Timberland rose 8% to $269.5 million. Sales in VF's “other brands” category, which includes Supreme, rose 9% to $393.9 million.
Revenue dropped at Vans (VF’s largest brand by revenue), where sales fell 7% to $946.8 million, and at Dickies, where sales fell to $170.4 million from $199.3 million in the year-ago period.
“We delivered solid top-line results in Q1, ahead of our initial expectations, led by strong consumer engagement with our outdoor, streetwear and active brands amidst a softer consumer environment and inflationary pressures,” stated Steve Rendle, chairman, president and CEO, VF Corp. “Importantly, we are maintaining our operating outlook for FY23, a testament to the resiliency of our purpose-built family of brands.”
Rendle continued that “while uncertainty persists across geographies and marketplaces from ongoing macro-economic headwinds, we are focused on the things that we can control and will continue our strategic investments to ensure long-term, sustainable and profitable growth.”
VF has slimmed down its portfolio to focus on its more consumer-minded active lifestyle brands.