VF Financial Results Q1 , 2017

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VF Corporation, with well known brands in its stable like The North Face®, Vans®, Timberland®, Wrangler®, Lee® and Nautica® , is a global leader in the design, manufacture, marketing and distribution of branded lifestyle apparel, footwear and accessories. The company’s highly diversified portfolio of 30 powerful brands spans numerous geographies, product categories, consumer demographics and sales channels. Denim and Jeanswear is one of the key segments where VF brands have a powerful presence. A study of VF’s financials gives an idea of the direction company is taking and some idea on how consumers are reacting to various segment offerings.

In this report we have done the detailed analysis as well as comparative analysis for 1st quarter of 2017  and a comparative analysis for the same period of last year.

Segment

Q1| 2017 ( Million $ )

Q1| 2016 ( Million $ )

%

  Outdoor & Action Sports

  1678.8

  1639.1

  2

       Jeanswear

  647.4

  710.6

  -9

      Imagewear

  135.0

  141.8

  -5

     Sportswear

  98.3

  118.4

  -17

      Other

  22.1

  24.5

  -10

    TOTAL

  2581.7

  2634.4

  -2

In the 1st Quarter of  2017, VF Corporation’s total revenue is  $2581.7 million, out of which outdoor & Action Sports  was $1678.8 million which  is 65 %(approx)  share of total revenue. The sales in Jeanswear has fallen  by 9% while Imagewear fell  about 5% which is not a normal reduction and shows significant loss of market.  There  is a huge fall of 17 % in Sportswear sales compared to last year  and  the other segment also saw a fall of 2 %On analysis we can  find that Outdoor & Action Sports is  the current flavor of the consumers and VF, like many other brands, are trying to are struggling to sustain their denim and sportswear sales.

Report Showing the Detailed and Comparative Analysis for First Quarter 2017

Report Showing the Detailed and Comparative Analysis for First Quarter 2017

Report Showing the Detailed and Comparative Analysis for First Quarter 2017

Report Showing the Detailed and Comparative Analysis for First Quarter 2017

If we look at the profit sharing of different segments ,there is marginal increase in the Outdoor & Action Sports by 1 % from the Q1 of last year ,however the Jeanswear segment reduced substantially by 14%  which shows that the actual realisations per unit of jeanswear is lower than last year . There is a fall of 7 percent in the share of total revenue of Imagewear segment. . The Sportswear segment is now a loss making proposition for VF and the company has not made any money on Sportswear sales.

PARTICULARS

Q1|2017

Q1|2016

%

Outdoor & Action Sports

230.94

228.11

1

Jeanswear

118.11

137.29

-14

Imagewear

24.40

26.14

-7

Sportswear

-1.07

4.78

-122

Other

-2.20

-2.61

-16

TOTAL

370.10

393.71

-6

 

Report Showing the Detailed and Comparative Analysis for First Quarter 2017

Report Showing the Detailed and Comparative Analysis for First Quarter 2017

Report Showing the Detailed and Comparative Analysis for First Quarter 2017

     Particulars

   % Revenue

% Profit

    Outdoor & Action Sports

            2%

      1%

    Jeanswear

          -9%

    -14%

     Imagewear

           -5%

     -7%

     Sportswear

           -17%

    -122%

    Other

           -2%

    -16%

Report Showing the Detailed and Comparative Analysis for First Quarter 2017

To summarise , Outdoor and Action Sports is the only segment working for VF right now and it seems to find itself in a spot in most other segments. It needs to pull up its socks to keep up in the tough business conditions !

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