(Reuters) -Vans parent VF Corp posted better-than-expected results for the second quarter on Tuesday, helped by strong demand for its footwear, bags and lifestyle apparel, even as economic uncertainty looms.
Shares of the Denver, Colorado-based company were up about 4% in premarket trading.
The Timberland maker’s upbeat results come against a backdrop of mounting pressure across the U.S. retail sector, where apparel and accessories companies are struggling to keep up with the impact of tariffs imposed by President Donald Trump.
The tariffs have disrupted key sourcing regions such as Vietnam and Indonesia, which are critical to the global supply chain for sportswear and apparel.
VF Corp, which sources the majority of its products from Southeast Asia and the Americas, has responded by ramping up production and shipments, working with suppliers to manage costs, and considering pricing strategies to offset the impact.
The company’s latest collections across brands helped boost sales, with revenue for the North Face brand rising 6% in the reported quarter, while Timberland surged 7%. Vans, however, declined 9% from a year earlier, though the drop moderated from the 14% fall in the prior quarter.
The company’s revenue of $2.80 billion for the quarter ended September 27, beat analysts’ estimate of $2.74 billion, according to data compiled by LSEG.
It posted a quarterly adjusted profit of 52 cents per share versus an estimated profit of 43 cents per share.
In September, the company announced plans to sell its workwear brand Dickies for $600 million in cash to brand management company Bluestar Alliance as a turnaround move to navigate through rising economic uncertainty.
The apparel retailer, however, expects third-quarter revenue, excluding Dickies, to fall between 3% and 1%, compared with estimates of a 1.54% rise, according to data compiled by LSEG.
(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Shailesh Kuber)
Comments