Shares for VF Corporation rose 3% in after market on Thursday as the company reported its fourth quarter and full year fiscal 2022 results.
On Thursday, VF reported a revenue increase of 9% to $2.8 billion in the fourth quarter of 2022. VF Corp. said in a statement that revenue in the quarter was driven by increases in the EMEA and North America regions, partially offset by a decline in the APAC region primarily due to COVID lockdowns.
Looking at each brand, The North Face had the most success in Q4, reporting a 24% increase in revenues at $770 million, up from $621 million in the year prior. Timberland rose 9% in the fourth quarter to $435 million, and Dickies rose 7% to $197 million. Vans was flat, however, in Q4 compared to the same time last year with revenues of $991 million.
As for the full fiscal year 2022, revenue increased 28% to $11.8 billion, driven by the company’s largest brands and regions. For each brand, The North Face saw the biggest bump in revenues for the full fiscal year, reporting a 33% increase to $2.46 billion. Vans and Timberland were both up 20% to $3.47 billion and $1.51 billion, respectively. And, Dickies was up 19% for the year, with earnings at $702 million.
Net income for the fourth quarter was $80.8 million, down from $89.5 million the same time last year. As for the full year, net income was $1.39 billion, up from $407.9 million in 2021.
VF said that the zero tolerance policy in China in response to COVID-19 is impacting some specific raw material suppliers within the country, but the company said the majority of its supply chain is currently operational and are back to normal operating levels.
Regarding port congestion, VF stated that logistics challenges have contributed to ongoing product delays, but the company is working with its suppliers to “minimize disruption” and is employing expedited freight strategically as needed. This strategy has led the company to report inventories up 34% in the fourth quarter compared to the same period last year.
“I am pleased with the progress we have made advancing our strategic priorities while successfully navigating another eventful year,” Steve Rendle, chairman and CEO of VF, said in a statement. “We largely delivered on the commitments we made at the outset of fiscal 2022 by achieving broad-based growth across our family of brands. A portion of our active segment did not achieve its potential. We understand the issues, we have the right people in place, and we know we will do better.”
Rendle added: “We will continue to thoughtfully invest in our brands and value-enhancing strategic growth opportunities, and I am confident VF has a long runway for sustained, profitable and broad-based growth ahead.”
Looking ahead, VF Corp. expects total revenue for fiscal 2023 up at least 7% in constant dollars, with The North Face forecasted to report revenues up low double digits and Vans up mid-single digits.