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The revenue of VF Corporation has increased 3 per cent (up 7 per cent in constant dollars) to $2.3 billion in the first quarter of fiscal 2023, driven by increases in the EMEA and Americas regions partially offset by a decline in the APAC region primarily due to COVID lockdowns in China. The company’s gross margin decreased 260 basis points to 53.9.
The change in gross margin is primarily driven by mix and higher freight costs partially offset by price increases. On an adjusted basis, gross margin decreased 260 basis points to 54.1 per cent. In the first quarter, the adjusted gross margin 54.1 per cent, down 260 basis points. The company’s operating margin was posted at 2.8 per cent, down by 640 basis points and the adjusted operating margin recorded at 3.4 per cent, down by 340 basis points, the company said in a press release.
The revenue of VF Corporation has increased 3 per cent (up 7 per cent in constant dollars) to $2.3 billion in the first quarter of fiscal 2023, driven by increases in the EMEA and Americas regions partially offset by a decline in the APAC region primarily due to COVID lockdowns in China. The company’s gross margin decreased 260 basis points to 53.9.
“We delivered solid top-line results in Q1, ahead of our initial expectations, led by strong consumer engagement with our outdoor, streetwear and active brands amidst a softer consumer environment and inflationary pressures. Importantly, we are maintaining our operating outlook for FY23, a testament to the resiliency of our purpose-built family of brands. I remain impressed by our teams, whose passion, perseverance and execution continue to drive our success. While uncertainty persists across geographies and marketplaces from ongoing macro-economic headwinds, we are focused on the things that we can control and will continue our strategic investments to ensure long-term, sustainable and profitable growth,” Steve Rendle, chairman, president and CEO of VF, said.
The company is maintaining its currency adjusted FY23 outlook while revising its earnings outlook on a reported dollar basis to reflect ongoing negative impacts from foreign currency fluctuations. It now expects adjusted EPS of $3.05 to $3.15, implying 4 per cent to 7 per cent growth versus the prior year on a constant dollar basis. The company expects revenue to be up by at least 7 per cent in constant dollars, unchanged from the previous outlook.
Fibre2Fashion News Desk (RR)
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