"VF's balanced performance in Q2 demonstrates the resiliency of our brand portfolio against a more disrupted global marketplace. Our purpose-built portfolio of iconic, deeply-loved brands continues to benefit from tailwinds in the outdoor, active, streetwear and workwear spaces while we also actively address the near-term challenges at Vans, the ongoing COVID-related disruption in China, and the broader macroeconomic and geopolitical headwinds, which have created tremendous uncertainty for all businesses and consumers", commented Steve Rendle, Chairman, President and CEO of VF Corp.

Second Quarter Results

In the second quarter of fiscal 2023, the company's revenue was down by 4% (up by 2% in constant dollars), totalling 3.1 billion US dollars, on a comparable basis to the same period of last fiscal year.  

In this period, the North Face posted a sales increase of 13% (14% in constant dollars), reaching 950.8 million US dollars, whereas sales at Vans decreased by 13% (by % in constant dollars), amounting to 952.1 million US dollars, as compared to the second quarter of fiscal 2021. Timberland's and Dickies' sales were also down in this quarter, by 4% (up by 3% in constant dollars) and 19% (by 15%), respectively, year-over-year. Furthermore, Other Brands' revenue grew slightly by 4% (by 13% in constant dollars).

VF's gross margin shrank 230 basis points in the second quarter of the current fiscal year to 51.4%, "primarily driven by higher costs and promotional activity partially offset by price increases", on a comparable basis to the same period of the prior financial year; on an adjusted basis, gross margin decreased by 240 basis points to 51.5%.

In the three months to the 1^st of October, the company reported earnings per share of 0.31 US dollars, as compared with earnings per share of 1.18 US dollars in a similar period of last year; on an adjusted basis, earnings per share declined by 34% to 0.73 US dollars.

Fiscal 2023 Outlook

For the full year 2023, VF "is maintaining its constant dollar revenue outlook but revising its earnings outlook to reflect increased negative impacts from foreign currency fluctuations as well as heightened inventory levels and increased promotional activity in the marketplace".

Therefore, the company is still expecting revenue to increase by 5% to 6% in constant dollars, but adjusted earnings in the range of 2.40 US dollars to 2.50 US dollars, against 3.18 US last year, and as compared to the previous outlook of 2.60 US dollars to 2.70 US dollars.