VF Corporation, whose stable of brands include Dickies, Timberland, The North Face and Vans, reported that direct-to-consumer revenue fell 5 percent for the full year fiscal 2021.
However, the company reported that digital revenue surged by 67 percent for the full year fiscal 2021, according to a Friday (May 21) announcement.
For the fourth quarter of fiscal 2021, which included one more week than the fiscal 2020 period, VF Corporation’s revenue climbed 23 percent from the previous year to $2.6 billion. Revenue grew by 16 percent outside of the effect of acquisitions, fueled by the firm’s biggest brands, online shopping expansion and an increase in the Asia-Pacific (APAC) region.
Gross margin fell by 1 percent to 52.1 percent, with the decrease mainly fueled by higher promotional activity to eliminate excess inventory and “the timing of net foreign currency transaction activity.”
VF Corporation posted 16 cents in earnings per share (EPS) on a reported basis for the fourth quarter of fiscal 2021. EPS grew to 27 cents on an adjusted basis.
The company’s board of directors declared a 49 cent per share quarterly dividend payable on June 21 to investors on record on June 10.
“Early in the year we took important actions to protect our people and the enterprise, while maintaining investments to drive our transformation and accelerate organic growth. At the same time, we took bold, forward-looking actions to spark additional growth and value creation. As a result, we are exiting this year in a position of strength with broad based momentum across the portfolio,” Chairman, President and Chief Executive Officer Steve Rendle said in the earnings announcement.
For the full year fiscal 2022, VF Corporation anticipates direct-to-consumer revenue to rise in the range of 38 percent to 40 percent, with the inclusion of digital revenue growth in the range of 29 percent to 31 percent. It anticipates revenue to be about $11.8 billion and adjusted earnings per share to be about $3.05.
The earnings results come as VF Corporation closed on its acquisition of Supreme for an aggregate base purchase price of $2.1 billion, which was “subject to customary adjustments for cash, indebtedness, working capital and transaction expenses.” The streetwear brand has become a wholly-owned subsidiary of VF Corporation with the arrangement.
“The acquisition of the Supreme brand accelerates VF’s consumer-minded, retail-centric, hyper-digital business model transformation and builds on a long-standing relationship between Supreme and VF, with the Supreme brand being a regular collaborator with VF’s Vans, The North Face and Timberland brands,” VF said in a previous announcement.