VF Corp.’s net income for Q1 declined 10 percent to $260.3 million year over year. However, the company’s Outdoor & Action Sports division, which includes The North Face, Vans and Timberland, saw increase two percent to $1.6 billion.
Timberland’s revenue was up two percent in the first quarter including a low single-digit increase in the Americas region; a mid-single-digit increase in Europe; and a mid-single-digit decline in Asia-Pacific.
Revenue for The North Face brand was up six percent driven by a low single-digit percentage rate increase in the Americas; a high-teen percentage rate increase in Europe; and, a mid-single-digit percentage rate increase in Asia-Pacific.
In line with expectations, Vans brand revenue was down 1 percent including a mid-single-digit increase in the Americas business; a high single-digit increase in Asia-Pacific; and a mid-teen percentage rate decrease in Europe where the brand continues to manage through elevated inventories related to its Classics collection.
In contrast, the company’s Imagewear division saw Q1 revenue drop five percent to $269 million (down 4 percent currency neutral) with the Licensed Sports Group business remaining flat and a high single-digit decline in the workwear business, which continues to be impacted by considerably less oil and gas exploration.
Sportswear’s first quarter revenue declined 13 percent to $118 million including a 14 percent decrease in Nautica brand revenues and an eight percent decrease in the Kipling brand’s North American business compared with the same period last year, reflecting ongoing challenges in demand for the sector.
First quarter revenue for the Contemporary Brands division was down 15 percent to $74 million, including a 53 percent decline in operating income.