"We delivered strong double-digit top and bottom-line results and returned about 500 million US dollars in cash to shareholders in the third quarter, all of which has been achieved amidst continuing macro headwinds. The broad-based momentum across our brands is testament to the resilience of our diversified portfolio model, which has enabled us to deliver a strong quarter and reaffirm our full year earnings outlook in a challenging environment. I am confident that VF remains well-positioned for continued, profitable, long-term growth”, commented Steve Rendle, VF's Chairman, President and CEO.

Third Quarter Results

In the third quarter of fiscal 2022, ended on the 1^st of January, VF’s revenue increased by 22%, reaching 3.6 billion US dollars, on a comparable basis to the same period of the prior year. The result was driven by the performances in the EMEA and North American regions, which had experienced a negative impact from COVID-19 in the prior period. Excluding the impact of acquisitions, revenue increased by 15%.

The third quarter active segment revenue increased by 25%, which includes growth of 8% in the Vans brand revenue and a 17% revenue increase from acquisitions, as compared to the same quarter of the previous year. Outdoor segment revenue grew by 23% and work segment revenue was up by 6%.

Concerning channels, direct-to-consumer revenue increased by 30% in the third quarter of the current year, as compared to the same period of financial 2021, and digital revenue grew by 21% over the third quarter of the last fiscal year.

Gross margin widened 140 basis points to 56.1% in the referred period, pushed by reduced promotional activity and offsetting incremental freight costs. On an adjusted basis, gross margin increased 60 basis points, including a 20-basis point positive impact from acquisitions, to 56.3%.

Earnings per share for the period equivaled 1.32 US dollars on a reported basis. On an adjusted basis, earnings per share increased by 45% to 1.35 US dollars, including an 0.11 US dollars contribution from acquisitions.

Full Year Outlook

VF is expecting revenue for fiscal 2022 to reach approximately 11.85 billion US dollars, reflecting growth of around 28% and including Supreme’s brand contribution. Adjusted earnings per share should be around 3.20 US dollars, including an approximate 0.25 US dollars contribution from Supreme.