“VF’s second quarter results were strong driven by our core brands, the company’s international and direct-to-consumer platforms, and our work businesses,” said Steve Rendle, Chairman, President and Chief Executive Officer. “As we move into the second half of our fiscal year, we are confident in our growth engines as evidenced by the increase in both our dividend and full year outlook. We continue to invest behind our strategic growth priorities, and the actions we are taking continue to advance our journey toward transforming VF into a purpose-led, performance-driven, consumer centric organization focused on and committed to delivering superior returns to shareholders.”

Second Quarter Performance

Revenue increased by 15% (up by 16% in constant dollars), now totaling 3.9 billion US dollars, including a 324 million US dollars revenue contribution from the Williamson-Dickie, Icebreaker and Altra acquisitions. Excluding acquisitions, revenue increased by 6% (up by 7% in constant dollars), driven by VF’s largest brands, international and direct-to-consumer platforms, and Active and Work segments.

Adjusted Full Year Outlook

Revenue for the full fiscal 2019 is now expected to increase at least by 11% to total at least 13.7 billion US dollars, which has been updated to include the following:

- Revenue is now expected to be at least 13.7 billion US dollars, reflecting an increase of at least 11% (compares to the previous expectation of revenue between 13.6 billion US dollars and 13.7 billion US dollars). The updated revenue outlook includes the negative impact of the expected divestitures of the Reef brand and the Van Moer business;

- By segment, revenue for Outdoor is now expected to increase by 7% to 8% versus the previous expectation of a 6% to 8% increase; revenue for Active is now expected to increase 14% to 15% versus the previous expectation of a 13% to 14% increase; revenue for Work is still expected to increase more than 35%; and, revenue for Jeans is now expected to decline 1% to 2% versus the previous expectation of revenue in line with the prior year;
- International revenue is still expected to increase between 12% and 13%;
- Direct-to-consumer revenue is now expected to increase between 12% and 14% versus the previous expectation of an 11% to 13% increase. Digital revenue is still expected to increase by more than 30%.