Strong Performance by North Face Brand Offsets Vans Sales Decline
- VF Corp Q1 revenues surge to $2.3bn
- North Face brand sales up 31% to $0.5bn
- Vans sales down 7% at $0.9bn
- Operating income on an adjusted basis decreased by 48% to $77.5m
- Gross margin down 260 basis points to 53.9%
- Adjusted EPS of $0.09, down 68%
- Maintaining currency adjusted FY23 outlook
- Revised earnings outlook due to foreign currency fluctuations
VF Corporation reported a 3% increase in its Q1 revenues to $2.3bn, driven by the EMEA and Americas regions. The North Face brand sales jumped 31% to $0.5bn, while Vans sales fell 7% to $0.9bn. Operating income on an adjusted basis dropped 48% to $77.5m. Gross margin was down 260 basis points at 53.9%, and adjusted gross margin was also down 260 basis points. Earnings per share (EPS) were $(0.14), a 137% decrease, with Adjusted EPS at $0.09, down 68%. VF Corp maintains its FY23 outlook and adjusted EPS expectations of $3.05-$3.15, reflecting 4-7% growth on a constant dollar basis. CEO Steve Rendle highlights the resiliency of their brand family amidst macroeconomic challenges.
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about VF Corporation’s financial performance in Q1, including revenue, brand sales, operating income, gross margin, and earnings per share. It also includes a quote from the CEO discussing the results and future outlook.
Noise Level: 2
Noise Justification: The article provides relevant financial information about VF Corporation’s Q1 performance, including revenue, sales, and earnings outlook. It also includes a statement from the CEO, which adds context to the results. The content is focused on the topic and does not contain irrelevant or misleading information.
Financial Relevance: Yes
Financial Markets Impacted: VF Corporation’s stock price may be impacted by its Q1 financial performance and revised earnings outlook.
Financial Rating Justification: The article discusses the company’s financial performance, including revenue growth, operating income, gross margin, and earnings per share. It also mentions a revision to the earnings outlook which could affect investor sentiment and potentially impact the stock price.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
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