VF Corp has reported a modest sales uplift in the second quarter, amid positive growth at The North Face and Timberland and a sequential improvement at Vans.
The company’s net revenue for the quarter ended September 27 rose 2 per cent to $2.8 billion, compared to flat growth in the first quarter.
On a constant currency basis, revenue was down 1 per cent, above the previous guidance of a 2-4 per cent decline.
Management said the results reflected better-than-expected back-to-school performance and early wholesale demand.
Sales at The North Face and Timberland grew 6 per cent and 7 per cent, respectively. Vans was down 9 per cent, a sequential improvement compared to the 12 per cent drop in the first quarter.
During the quarter, the company announced the sale of its Dickies brand to Bluestar Alliance for $600 million. The deal, expected to close by the end of this year, aligns with VF’s strategy to streamline its portfolio and refocus on its core lifestyle and outdoor brands.
On the bottom line, operating income increased 5 per cent to $313 million and net debt reduced 21 per cent.
The company expects third-quarter net revenue to decrease 1-3 per cent in constant currency. It also expects a growth in operating income for the full year despite tariff impacts. The guidance excludes Dickies in current and prior years.
