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 shoe maker VF Corp raised its full year revenue and earnings forecast on Friday after soaring demand for its fashionable and high-priced sneakers helped its first-quarter results beat Wall Street estimates.
Shares of the company rose 5 percent to $93.75 in pre-market trading and were on course to open at a record high.
Sales of Vans, a favorite of skateboarders and appealing to a more fashion-centric crowd, rose 35 percent in the quarter.
Over the past few years, VF pulled back inventories and updated styles to make the brand more popular with millennials and compete with Nike.
ADVERTISEMENT
"Vans remains on fire," Cowen analyst John Kernan said in a client note.
In stark contrast, Skechers USA Inc reported a lower-than-expected profit and gave a disappointing quarterly forecast on Thursday, sending its shares tumbling.
VF which also makes North Face apparel and Wrangler jeans raised its fiscal 2019 revenue forecast to between $13.6 billion and $13.7 billion, compared with analysts' expectations of $13.56 billion.
The Greensboro, North Carolina-based company's total revenue rose 23 percent to $2.79 billion in the quarter ended June 30, beating analysts' average estimate of $2.68 billion, according to Thomson Reuters I/B/E/S.
The company raised its full-year earnings forecast range to $3.52 to $3.57 per share from a prior expectation of $3.48 to $3.53.
Excluding certain items, VF, earned 43 cents per share, beating analysts' average estimate of 33 cents.
Net income rose to $160.4 million, or 40 cents per share, in the quarter, from $109.9 million, or 27 cents per share, a year earlier.
By Uday Sampath, additional reporting by Melissa Fares; editors: Bernard Orr and Shailesh Kuber.
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.