VF CORPORATION REPORTS MIXED RESULTS FOR 2016
VF Corporation, whose brands include Vans, The North Face, Timberland, Wrangler and Nautica, has reported financial results for its fourth quarter and full year ended December 31, 2016.
For Fiscal 2016, revenue was in line with last year at $12.0 billion (up 1 percent currency neutral) driven by continued momentum in its international and direct-to-consumer platforms, and its Vans business. Meanwhile, earnings per share on a reported basis was down 9 percent to $2.78 compared to $3.04 in 2015. Adjusted earnings per share for 2016 increased 2 percent to $3.11, and excluding the impact of changes in foreign currency, adjusted 2016 earnings per share was up 7 percent.
For the fourth quarter, revenue was in line with last year’s fourth quarter at $3.3 billion (up 1 percent currency neutral) driven by strength in its international and direct-to-consumer platforms, and its Vans business, Meanwhile earnings per share on a reported basis was down 33 percent to $0.63 compared to $0.94 during the same period last year. Adjusted earnings per share for the fourth quarter increased 3 percent to $0.97, and excluding the impact of changes in foreign currency, adjusted fourth quarter earnings per share was up 8 percent.
Looking ahead to 2017, revenue is expected to increase at a low single-digit percentage rate including about a two percentage point negative impact from changes in foreign currency. By coalition, revenue for Outdoor & Action Sports is expected to increase at a low single-digit percentage rate; revenue for Jeanswear is expected to approximate 2016 levels; Imagewear revenue is expected to increase at a low single-digit percentage rate; and Sportswear is expected to decline at a high single-digit percentage rate.
“The pace of change in both our industry and the broader consumer landscape is happening at an accelerated rate,” said Steve Rendle, president and CEO. “The proliferation of technology and innovation across all aspects of our lives has shifted consumers’ shopping behaviors and elevated their expectations when engaging with our brands. We are pivoting to become more agile and consumer-centric to compete and win in this changing global marketplace.”
