US Apparel Giant VF Continues To Deteriorate In The North American Home Market.

U.S.A

Giant VF Wei Fu Group in North America

The performance continued to deteriorate, resulting in the third quarter income not only worse than market expectations began to shrink.

As of the third quarter of October 1st, group net profit rose 8.4% to $498 million 500 thousand and earnings per share were $1.19. After adjusted tax deduction, earnings per share were $1.14, and overall income fell 1.2% to 3 billion 490 million dollars, less than the average Wall Street analyst expected $3 billion 630 million, with sales of $1.2% to 3 billion 460 million dollars.

At the end of August this year, the group has completed the sale of Contemporary Brands business to Delta Galil Industrial Company.

The sale of the business was not related to the performance of the group. The sale of the business resulted in a loss of $5 million in the third quarter.

In the first 9 months of October 1st, net profit fell by 11.9% to 809 million 800 thousand US dollars, and the overall income was basically unchanged from the same period last year, at 8 billion 700 million US dollars.

The group's gross profit margin increased by 70 basis points to 48.4%, thanks to pricing, portfolio reduction and product cost reduction.

The Group Chairman and CEO Eric Wiseman pointed out that the group will continue to operate under the unstable circumstances of the global economy, including the weak retail market in the Americas, which is also the largest market of the group.

The group has strong balance sheets, strong brands and growing global influence. The group is confident of its ability to maintain short-term profitability, and the group will focus on improving its operation mode and creating more sustainable long-term growth opportunities for the brand with environmental advantages.

According to the product division, the revenue of outdoor products department including The North Face, Vans and Timberland brands increased by 2% to 2 billion 300 million US dollars.

Because of the weak consumer demand and the change of delivery orders, the income of jeans and garment departments, including Wrangler and Lee brands, fell by 6% to 701 million dollars.

Image clothing department revenue fell 3% to 282 million U.S. dollars, while sportswear Department revenue fell 13% to 141 million U.S. dollars.

The group said that business revenue in the international region increased by 5%, and direct channel business revenue increased by 6%.

The group further downplayed the outlook and lowered its annual performance target for the second time. It expected revenue to rise by 2% to 12 billion 200 million US dollars. The revenue growth forecast before was 3% to 4%. Earnings per share were expected to rise 3% to 3.13 dollars, and the earnings per share forecast before increased by 5% to 3.2 dollars.