Vans, The North Face parent reports huge sales growth in China
VF Corporation – parent of brands including Vans and The North Face – says sales in China soared 20 per cent in the September quarter.
Expressed in constant currency terms, they rose by 24 per cent year on year.
The China performance was a key factor in the company’s global sales rising 5 per cent in the quarter to US$3.4 billion, or by 6 per cent when excluding acquisitions and divestments.
Globally, Vans led the way with sales up 14 per cent and The North Face improved by 8 per cent.
“We’re pleased with the strength of our second-quarter and first-half results, driven by our two largest brands and our international and direct-to-consumer platforms,” said Steve Rendle, chairman, president and CEO. “The quality and fundamentals of our business remain solid as a result of the focus and strategic execution of our business teams around the globe.”
He said that despite an increasingly uncertain geopolitical and macroeconomic environment, the company is confident in the trajectory of its business.
“We remain deeply committed to transforming VF into a more consumer-minded and retail-centric organisation while delivering superior returns to shareholders.”
Gross margin from continuing operations increased 90 basis points to 52.9 per cent. Operating income on a reported basis was $579 million.
The company still expects its full-year revenue to be about $11.8 billion, reflecting growth of about 6 per cent.