Business

VF Reports Second Quarter Fiscal 2022 Results

October 22, 2021
Smith

  • VF Reports Second Quarter Fiscal 2022 Results; Reaffirms Full-Year Fiscal 2022 Earnings Outlook

  • Revenue from continuing operations increased 23 percent (up 21 percent in constant dollars) to $3.2 billion; excluding acquisitions, revenue increased 19 percent (up 17 percent in constant dollars);

  • Active segment revenue increased 16 percent (up 14 percent in constant dollars) including an 8 percent (7 percent in constant dollars) increase in Vans® brand revenue and an 8 percentage point revenue growth contribution from acquisitions; Outdoor segment revenue increased 31 percent (up 28 percent in constant dollars) including a 31 percent (29 percent in constant dollars) increase in The North Face® brand revenue; Work segment revenue increased 18 percent (up 17 percent in constant dollars) including a 21 percent (19 percent in constant dollars) increase in Dickies® brand revenue;

  • International revenue increased 18 percent (up 15 percent in constant dollars) including a 2 percentage point revenue growth contribution from acquisitions; Europe revenue increased 19 percent (up 17 percent in constant dollars); Greater China revenue increased 9 percent (up 3 percent in constant dollars), including a 9 percent (2 percent in constant dollars) increase in Mainland China;

  • Direct-to-Consumer revenue increased 32 percent (up 31 percent in constant dollars) including an 11 percentage point revenue growth contribution from acquisitions; Digital revenue increased 24 percent (up 22 percent in constant dollars) versus the prior year including a 19 percentage point revenue growth contribution from acquisitions; excluding acquisitions, Digital revenue increased 54 percent versus the second quarter of fiscal 2020;

  • Gross margin from continuing operations increased 290 basis points to 53.7 percent; on an adjusted basis, gross margin increased 300 basis points to 53.9 percent including a 20 basis point positive impact from acquisitions;

  • Operating income from continuing operations on a reported basis was $558 million; on an adjusted basis, operating income from continuing operations increased 56 percent (53 percent in constant dollars) to $534 million including an $8 million contribution from acquisitions;

  • Earnings per share from continuing operations was $1.18; adjusted earnings per share from continuing operations increased 66 percent (up 63 percent in constant dollars) to $1.11 including a $0.02 per share contribution from acquisitions;

  • Full-year fiscal 2022 revenue is now expected to be approximately $12.0 billion, reflecting growth of around 30 percent, including an approximate $600 million contribution from the Supreme® brand; full-year fiscal 2022 adjusted earnings per share is expected to be around $3.20, including an approximate $0.25 contribution from the Supreme® brand.

DENVER, CO (STL.News) VF Corporation (NYSE: VFC) today reported financial results for its second quarter ended October 2, 2021.  All per share amounts are presented on a diluted basis.  This release refers to “reported” and “constant dollar” amounts, terms that are described under the heading “Constant Currency – Excluding the Impact of Foreign Currency.”  Unless otherwise noted, “reported” and “constant dollar” amounts are the same.  This release also refers to “continuing” and “discontinued” operations amounts, which are concepts described under the heading “Discontinued Operations – Occupational Workwear Business.”  Unless otherwise noted, the results presented are based on continuing operations.  This release also refers to “adjusted” amounts, a term that is described under the heading “Adjusted Amounts – Excluding Transaction and Deal Related Activities and Costs Related to Specified Strategic Business Decisions.”  Unless otherwise noted, “reported” and “adjusted” amounts are the same.

“As we move through the halfway point of our fiscal year, I remain encouraged by the underlying momentum across the portfolio, and the broad-based nature of this strength gives me confidence that we are driving the right strategy to accelerate growth in the quarters ahead,” said Steve Rendle, VF’s Chairman, President, and CEO.  “While the recovery has been impacted by further pandemic-related disruptions, we continue to see accelerating demand signals across our business, and our ability to reaffirm our Fiscal 2022 revenue and earnings outlook is a clear testament to the resiliency and optionality of our model.”

NOTE: This is NOT the complete release.  CLICK to view the complete release PDF.