Vans and Timberland continue to be a bright spot in VF Corporation’s brand portfolio, driving the company’s fourth quarter revenue for its Outdoor and Action Sports division up two percent to $2.1 billion.
On Friday, the company posted revenue of $3.32 billion in fourth quarter 2016, missing Wall Street forecasts. AP reported 18 analysts surveyed by Zacks expected $3.45 billion.
Earnings per share on a reported basis was down 33 percent to $0.63 compared to $0.94 during the same period last year. Adjusted earnings per share for the fourth quarter increased 3 percent to $0.97.
Vans’ revenue for Q4 increased 14 percent, led by a mid-teen increase in the Americans business and 20 percent growth in Asia Pacific. Revenue for the brand for the full year was up six percent, totaling $2.3 billion.
Timberland’s fourth quarter revenue increased four percent, with the most growth taking place in Europe. Full year Timberland brand revenue was up one percent to $1.8 billion.
VF’s overall direct-to-consumer business increased 11 percent in the fourth quarter driven by a mid-teen increase in the Outdoor and Action Sports business. Direct-to-consumer revenue reached 37 percent of total fourth quarter revenue compared with 33 percent in last year’s same period. For the year, direct-to-consumer revenue was up eight percent.
For the full year 2017 outlook, VF remain cautionary, expecting revenue to increase at a low single-digit percentage rate.
“The pace of change in both our industry and the broader consumer landscape is happening at an accelerated rate,” said Steve Rendle, VF president and chief executive officer. “The proliferation of technology and innovation across all aspects of our lives has shifted consumers’ shopping behaviors and elevated their expectations when engaging with our brands. We are pivoting to become more agile and consumer centric to compete and win in this changing global marketplace.”