The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
GREENSBORO, United States — Vans and The North Face parent company VF Corp.'s quarterly beat, aided by a sales increase in China, is fuelling a rally in branded apparel peers that include Canada Goose, where concerns of a slowdown in the region has weighed on the stock.
China sales increased 23 percent year-over-year on a constant currency basis at VF Corp. During the conference call, executives said China is a "strategic investment priority" that’s paying off. Finance chief Scott Roe said the company saw "pretty meaningful acceleration in our China business this year," which gives management confidence in its outlook for the region.
The company is monitoring China and other markets closely and maintains that the overall consumer backdrop remains solid. "As it relates to trade, the impact-to-date has been de minimis," chief executive Steve Rendle said during the call.
The retailer's shares climbed more than 15 percent, the most intraday since March 2000. Results were also helped by brands North Face and Vans, which produced quarterly sales that topped analysts' estimates. VF shares are the top performer in the S&P 1500 Textile & Apparel Index (S15TEXA), which rose 3.2 percent, the highest in more than six weeks. Other notable index gainers include Hanesbrands Inc., Carter's Inc., Ralph Lauren Corp. and PVH Corp.
ADVERTISEMENT
Shares of Canada Goose, which had been under pressure recently amid political tensions between China and Canada, climbed as much as 5.1 percent. The Toronto-based retailer is expected to report results early next month, according to Bloomberg data.
By Janet Freund; editor: Catherine Larkin, Will Daley
In 2020, like many companies, the $50 billion yoga apparel brand created a new department to improve internal diversity and inclusion, and to create a more equitable playing field for minorities. In interviews with BoF, 14 current and former employees said things only got worse.
For fashion’s private market investors, deal-making may provide less-than-ideal returns and raise questions about the long-term value creation opportunities across parts of the fashion industry, reports The State of Fashion 2024.
A blockbuster public listing should clear the way for other brands to try their luck. That, plus LVMH results and what else to watch for in the coming week.
L Catterton, the private-equity firm with close ties to LVMH and Bernard Arnault that’s preparing to take Birkenstock public, has become an investment giant in the consumer-goods space, with stakes in companies selling everything from fashion to pet food to tacos.