VF Corporation posts first results after Kontoor spinoff
Apparel giant VF Corporation has reported a 9 per cent increase in same-store sales on a currency-neutral basis in the June quarter, to US$2.3 billion.
VF Corporation owns a portfolio of outdoor and activity-based lifestyle and workwear brands, including Vans, The North Face, Timberland and Dickies. In May it spun off its denim business, which includes Lee and Wrangler labels, in a new company called Kontoor Brands.
The company said its gross margin increased by 140 basis points to 54.4 per cent, driven by favourable mix and timing of foreign-currency transaction hedge gains.
Operating income was $133 million.
“Our first quarter represents a new chapter for VF following the spin-off of Kontoor Brands and our relocation to Denver, Colorado,” said Steve Rendle, chairman, president and CEO.
“Our first-quarter results demonstrate the power of VF’s evolved portfolio and our progress along our journey to become a purpose-led, performance-driven, value-creating enterprise anchored in our commitment to be more consumer-minded and retail-centric in everything we do.”
VF Corporation recorded an after-tax net loss from discontinued operations was of $48 million in the first quarter of fiscal 2020, which reflects the operating results of the jeans business, including $59.5 million of separation costs related to the spin-off.
Figures in the quarterly results above are compared with comparable trading period last year, after the removal of the discontinued (spun-off) business.