VF Corp, owners of Wrangler, Vans, The North Face, and Timberland, among others, announced their Q1 Results for 2012 with revenues rising 31%. This is due in large part to the $356 million in revenues from their relatively new Timberland acquisition. Net income overall rose 9% to $219 million from $201 million in the same period last year.
Other key aspects include: • 60% growth in global revenues, due in large part to Timberland and Smartwool acquisitions and an additional $356 million. • The North Face increased 14%; with direct-to-consumer revenues up more than 20%. • Vans global revenues up 25%; with direct-to-consumer up 18%. • Jeanswear division grew 9% with double digit growth for Lee and positive response to recent launch of Rock and Republic. Growth of jeanswear declines occurred mostly in Europe. • Contemporary brands category increases 13%, especially for 7 for All Mankind due to fashionable styles in denim and sportswear up 18%.
International sales are an important part of the VF Corp growth strategy with revenues increasing 48% in Q1, with much of this due to Timberland. Vans and The North Face contributed to 13% growth for Europe. There’s also been strong growth in Asia, up 19%, and India, up 18%.
What’s next for VF Corp? Looking ahead to Q2, they anticipate a challenging season. First Timberland tends to do poorly in the second quarter as a seasonal business. They also anticipate ongoing negative impact from foreign currency translations and higher pension expenses.
However overall, VF Corp and its stable of brands is one of the highlights of the quarter.