VF Corp. sees a decline in all segments in 2015

By

Olivier Guyot

Published
Feb 22, 2016

The final quarter of 2015 turned out to be troublesome for VF Corporation, the giant American group that owns of several sport and fashion brands (The North Face, Vans, Timberland, Napapijri, Nautica, Kipling, Lee, Wrangler, Eastpak, etc.). In the last calendar quarter, the group's revenue declined by 5% (by 1% at a constant exchange rate).

Revenue has fallen in all the segments, with Imagewear at -13% and contemporary fashion brands at -19%, while Sportswear decreased by 9%. Outdoor and Jeanswear too have suffered a decline, by 3% and 2% respectively. Traditionally the group's drivers, the two segments were dragged down by a strong dollar: at constant exchange rates their sales grew by 1%.

Taking the whole year into account, the two segments allowed the entire group to grow. VF Corp. recorded a 1% increase in revenue, reaching $12.38 billion (€11.22 billion). At constant exchange rates, the growth was equal to 6%.

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In more detail, the group's Outdoor Action Sports segment grew 3% (+9% at constant exchange rates), reaching $7.4 billion. Jeanswear remained stable (+4%) at $2.79 billion. Imagewear and Sportswear fell by 2%, while the contemporary brands segment suffered a 14% loss (-11%).

On the other hand, and thanks chiefly to a favourable dynamic in the value of fixed assets, VF Corp. managed to improve its EBIT by 16%, reaching $1.66 billion.

Net income rose 18% to $1.23 billion.