What Drove VF Corporation’s Q1 2018 Top Line?



VF Corporation’s first-quarter top-line beat

VF Corporation (VFC) recorded total sales of $2.8 billion during the first quarter of 2019. Sales from continuing operations improved 23% YoY (year-over-year) on a reported basis and 21% YoY on currecy-neutral basis. The company beat Wall Street top-line expectations by $110 million.

Growth during the quarter was driven by acquisitions ($249 million) as well as strength in the company’s core brands like Vans and The North Face, ongoing momentum in international markets, and robust performance at the company’s DTC (direct-to-customer) channel. Excluding acquisitions, total sales improved 12% YoY.

“VF’s first quarter results were strong, driven by continued broad based acceleration across our core brands and platforms,” said Steve Rendle, VF Corporation’s president and CEO.

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Key revenue drivers

Revenue from the overseas business grew 27% YoY, including 13% growth through acquisitions. On an organic basis, growth was balanced between US and overseas markets. China and Europe were particularly strong, witnessing 30% and 18% growths during the quarter.

The DTC channel continued to show strength and grew 16% YoY, including 15% growth in sales comps. Digital sales were up 30% YoY.

The company’s big three brands grew at a combined rate of 21%. Vans was, once again, the star of the quarter. It recorded stellar 35% growth. The North Face sales were up 8%.

Investors who want exposure to VFC can consider the Invesco DWA Consumer Cyclicals Momentum ETF (PEZ), which invests 4% of its portfolio in VFC.

Read about the performance of VFC’s key revenue segments in the next part of this series.


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