Vans is on a roll.
The skateboarding-inspired brand powered parent firm VF Corp. to a winning first quarter, with results topping estimates across the board.
At market open, VF’s stock was up nearly 4 percent to $92.44.
With Vans logging a 35 percent gain in sales during the period, Greensboro, N.C.-based VF posted total sales of $2.8 billion — a 23 percent hike over the comparable period and better than analysts’ bets of $2.7 billion. The North Face contributed a 8 percent gain to those results, while recently acquired brands Williamson-Dickie, Icebreaker and Altra added revenues of $249 million.
Overall, reported profits were up 46 percent to $160.4 million, or 40 cents per diluted share. On an adjusted basis, profits were 43 cents per share — including 4 cents contributed from recent acquisitions — handily topping forecasts for profits of 33 cents per share.
“VF’s first-quarter results were strong, driven by continued broad-based acceleration across our core brands and platforms,” said chairman, president and CEO Steve Rendle. “We are executing well against our 2021 growth plan and continuing on our journey to reshape the portfolio and transform VF into a purpose-led, performance-driven, consumer-centric organization focused on and committed to delivering superior returns to shareholders.”
Q1 international revenues increased 27 percent, direct-to-consumer sales rose 22 percent, and digital advanced 54 percent.
In tandem with the better-than-expected results, VF boosted its outlook for the fiscal year and expects revenue in the range of $13.6 billion to $13.7 billion, reflecting an increase of 10 percent to 11 percent and adjusted earnings per share in the range of $3.52 to $3.57, reflecting an increase of 12 percent to 14 percent.