A remade VF Corp. gained some more momentum in its fiscal third quarter.
The company — parent to The North Face, Vans, and Timberland — has been in a period of deep transition, with a snap change in the C-suite in late 2022, a sale of Supreme in 2024 and a sale of Dickies in September.
The trimmer profile is working for the company.
Excluding Dickies, which Bluestar Alliance bought for $600 million, VF Corp.’s revenues rose 4 percent to $2.8 billion. And earnings per share of 58 cents came in 14 cents ahead of the 44 cents Wall Street projected, according to Yahoo Finance. The company is also paying a 9 cent dividend for the quarter.
Bracken Darrell, president and chief executive officer, said: “In Q3, we delivered growth during our peak holiday quarter and beat revenue and operating income guidance. The North Face and Timberland each grew 8 percent and 5 percent on a constant dollar basis, while Vans results were as we expected [and down 10 percent]. The Americas region had its strongest performance in over three years, while global DTC inflected to growth. We remain on track to deliver our medium-term financial targets and are excited about the future of the business.”
The direct-to-consumer business grew 3 percent, in constant currencies and excluding Dickies, driven by the digital channel.
Reported net income for the quarter ended Dec. 27 rose to $300.8 million from $167.9 million a year earlier while revenues increased 1.5 percent to $2.9 billion.
For the fourth quarter, VF is predicting that its adjusted revenues will range from flat to up 2 percent while adjusted operating income tallies $10 million to $30 million.
Investors traded shares of VF up 2 percent to $20.70 in premarket trading on Wednesday.
