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.
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.