Note: Year-ago figures are GAAP. Source: Company reports/Coresight Research

1Q19 Results

VF Corporation reported 1Q19 revenues of $2.79 billion, up 22.9% year over year and above the consensus estimate of $2.68 billion. Adjusted EPS from continuing operations was $0.43, beating the consensus estimate of $0.33. The Active segment revenues increased 25%. Revenues for the Outdoor segment increased by 6%. The company’s international business increased by 14%, led by more than 30% growth in China and 18% growth in Europe. VF Corporation reported that its direct-to-consumer revenues increased by 22%, including a 6-percentage-point revenue growth contribution from acquisitions. Digital revenues increased 54%, including a 21-percentage-point revenue growth contribution from acquisitions. The company reported that “Victory Brands” revenues grew at a combined rate of 21%, with the Vans brand up 35% from a year ago, with double-digit growth across all regions, channels and product families. VF Corporation also reported that The North Face brand continued to grow at 8%, with women’s and lifestyle products performing particularly well, which the company attributed to the “She Moves Mountains” campaign, which focuses on the next generation of female explorers.

Additional Details from the Quarter

Revenues for the Top-Five Brands Globally

• Revenues from Vans increased by 35% and were up 32% on a currency-neutral basis.
• Revenues from The North Face increased by 8% and were up 5% on a currency-neutral basis.
• Revenues from Timberland increased by 2% and were down 1% on a currency-neutral basis.
• Revenues from Wrangler increased by 4% and were up 5% on a currency-neutral basis.
• Revenues from Lee increased by 1% and were down 1% on a currency-neutral basis.

Revenue Growth by Geography

• Revenues from the Americas increased by 21% and were up 23% on a currency-neutral basis, including US growth of 20% (up 20% on a currency-neutral basis).
• Revenues from EMEA increased by 32% and were up 24% on a currency-neutral basis.
• Revenues from APAC increased by 24% and were up 18% on a currency-neutral basis.
• Total International revenues increased by 27% and were up 22% on a currency-neutral basis.

Other Channels

• Revenues from the Wholesale division increased by 23% and were up 21% on a currency-neutral basis.
• Revenues from the Direct-to-Consumer business increased by 22% and were up 20% on a currency-neutral basis.
• Revenues from the Digital business increased by 54% and were up 50% on a currency-neutral basis.

Outlook

VF Corporation raised its full-year guidance: increasing its EPS guidance by 12%–14% to $3.52–$3.57 from $3.48–$3.53 previously; and raising full-year revenue guidance by 10%–11% to $13.6–$13.7 billion from $13.5–$13.6 billion previously.