VF Corp. reported a net loss of $56 million in the first quarter of 2023 on Thursday amid a softer consumer environment and inflationary pressures.
Despite this loss, the maker of brands such as Vans, The North Face and Timberland posted revenue of $2.3 billion in the period, a 3% increase. The Denver-based company said in a statement that revenue in the quarter was driven by increases in the EMEA and Americas regions partially offset by a decline in the APAC region primarily due to COVID lockdowns in China.
Looking at each brand, The North Face was the company’s top performing label, increasing 31% in the quarter to $481.1 million. Timberland was up 8% to $269.5 million in the quarter.
Vans and Dickies, on the other hand, did not fare as well in the first quarter. The SoCal footwear brand dropped 7% to $946.8 million in Q1 with Dickies reporting it fell 15% in the quarter to $170.4 million in sales.
Shares for VF Corp. were down 0.58% in after-market trading on Thursday after a full day of gains, ending the day up 3.7%.
VF Corp. chairman, president and CEO Steve Rendle said Q1’s results were due to the softer consumer environment and inflationary pressures. “We delivered solid top-line results in Q1, ahead of our initial expectations, led by strong consumer engagement with our outdoor, streetwear and active brands,” Rendle said in a statement.
“While uncertainty persists across geographies and marketplaces from ongoing macro-economic headwinds, we are focused on the things that we can control and will continue our strategic investments to ensure long-term, sustainable and profitable growth,” he added.
Looking ahead, VF is maintaining its currency adjusted fiscal year 2023 outlook while revising its earnings outlook on a reported dollar basis to reflect ongoing negative impacts from foreign currency fluctuations. It now expects adjusted EPS of $3.05 to $3.15, implying 4% to 7% growth versus the prior year on a constant dollar basis.