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VF Reports Mediocre Q1

At VF, parent company to brands like Timberland and Vans, the first quarter was less to write home about.

Revenue in the three-month period ended April 1, was down 2 percent to $2.6 billion, but the company said its international and direct-to-consumer platforms, plus its Outdoor & Action Sports segment delivered stronger results in the quarter. The brand saw a 5 percent increase in brand revenue for Vans.

Operating income fell 7 percent to $291 million compared to the previous year’s quarter. VF also said its inventories were up 2 percent in the period.

“VF’s first quarter results were right in line with our expectations. The company’s largest brands and international and direct-to-consumer platforms performed well, delivering solid results against a retail backdrop that continues to experience significant dislocation,” VF president and CEO Steve Rendle, said. “Our diversified value-creation model and our focus on becoming a more agile and consumer-centric organization position us to accelerate growth through 2017 and execute against our recently announced 2021 strategic growth plan.”

In looking ahead to the rest of 2017, VF said revenue is expected to increase at a low single-digit percentage and earnings per share will be down in the low single-digits.