Vans Became VF'S Three Quarter Growth Engine

According to the world clothing shoes and hats net, sports and leisure and street trend are sweeping the globe.

Vans Vance has become the engine of the three quarter growth of VF Corp. (NYSE:VF). The optimistic outlook of the brand in the rest of the year has contributed to the United States.

The giant raised its annual revenue and earnings expectations.

Investors continued to welcome the VF Corp. (NYSE:VF) this year, which surged 8.4% to 71.95 dollars on Monday, 23, hitting a two-year high.

Even though the two major brands of Timberland and The North Face continued to slow down, they recorded 3% and 2% fixed exchange rate revenue declines during the three quarter ending September, but they all rely on the 26% strong growth of Chao Vans Vans, which belongs to the outdoor and extreme sports sectors. The fixed exchange rate of revenue rose by 6% to 2 billion 502 million 600 thousand dollars in the three quarter.

Vans fan has recorded an increase of more than 20% in the three major regional markets of the world, and Europe has jumped nearly 40%, and the brand's annual revenue growth forecast has been raised to 15%.

The VF Corp. Vans group revealed that Vans's sales of classic black-and-white checkerboard and retro series were more than doubled. The new series of Ultra Range new products that were released this summer also exceeded expectations during the return season.

VF Corp. rich group bought Vans Vans fan in 2004 for $396 million.

Data show that over the past fiscal year, the brand has surpassed The North Face and Northern Group has become the largest brand in the group, and footwear accounts for 80% of the brand.

"You may question whether such a high level growth of Vans can last," said Steve Rendle Rendle, President and chief executive of the group. "We believe that the brand will continue to have strong growth momentum in 2018, but the year by year comparison will make it difficult."

But he stressed that such a situation has always existed. Even so, the average annual growth of Vans's van sum has reached double digits in the past 6 years.

Vans fan has recently been elected one of the most popular sneakers in Piper Jaffray & Co.'s youth consumption survey in the United States, which is Nike with Adidas, Adidas and Puma Puma.

The dominance of the hegemony was impacted.

As for the weak Timberland Tim Bai Lan and The North Face north, the group is starting from the product. It is expected that it will be able to get rid of the decline in autumn 2018, and the resumption of historical growth level will not be until 2019 autumn.

The outlook for the second sector is still unclear. Individual brands have developed individually, while Wrangler revenue has increased by 4% over the same period, while Lee has recorded a 8% decline.

Fixed exchange rates account for an annual decrease of 1% to 697 million 700 thousand yuan.

Analysts believe that the jeans department is the only problem of VF Corp. group.

The tooling department increased revenue by 8% to 138 million 900 thousand US dollars over the same period, driven by the growth of 31%, 17% and 10% of the three major brands, Timberland Pro, Wrangler Workwear and Bulwork FR.

The group's acquisition of the $820 million acquisition of Williamson-Dickie Mfg. Co. Co., the parent company of 5 brands such as Dickies, was not completed until October 2nd.

The Group expects the new business to generate $200 million in revenue for the rest of the fiscal year. By 2021, Williamson-Dickie Mfg. Co. is expected to reach an annual revenue of $1 billion.

Steve Rendle revealed that the group would still closely follow the acquisition opportunities, but he rebutted some Wall Street analysts' view that they needed large acquisitions to achieve the goal of earning $12 billion a year.

He pointed out that the first consideration for mergers and acquisitions is brand composition and whether it helps groups to establish direct links with consumers.

According to the market and fixed exchange rate, VF Corp. rich group grew at zero in the three quarter of the US, while the international market increased by 10%, of which EMEA and China achieved 14% and 9% respectively.

According to the channel, directly to the consumer channel, a sharp increase of 17%, of which the number of sales increased by 37%; wholesale business can only be flat in the same period last year.

In the three quarter, the total revenue of VF Corp. group was increased by $3 billion 508 million 800 thousand, up 5.4% from 3 billion 327 million 700 thousand US dollars in the same period last year, which is better than the US $3 billion 390 million in the market forecast. It was better than expected in the two quarter (failed to reach the market target in the past two years) and the fixed exchange rate rose 4%.

The net profit of continuing operations decreased by 20.3% to US $386 million 800 thousand per annualized year, and EPS business continued to decline from US $1.16 in the same period last year to US $0.97.

The adjusted EPS is $1.23, which is 9.8% higher than FactSet's consolidated expectation of $1.12.

The gross profit margin of continuing operations increased by 180 basis points to 50.1% at fixed exchange rates.

JPMorgan Chase & Co. Morgan chase analyst Matthew R. Boss pointed out that the inventory of VF Corp. rich group was only 0.6% higher than that of the same period last year, which is ideal.

The VF Corp. group has raised its annual revenue target from US $11 billion 850 million to US $12 billion 100 million, and the growth rate of fixed exchange rate has increased from 4.5% to 5.5%.

The growth prospects of the international market and the channels directly facing consumers have been raised.

The gross margin forecast also increased by 50 basis points to 50%.

Steve Rendle predicts that the overall market for outdoor clothing will be good in the four quarter and the holiday season.

VF Corp. (NYSE:VF) reported $69.95 on Monday, an increase of 5.38% throughout the day, extending the cumulative increase to 31.1% in 2017.

Wells Fargo & amp; Co. & amp; Ike, Boruchow Ike, analyst at Wells Fargo Bank, awarded the unit a target price of $67.

The S & P 500 index has risen by 14.6% this year after its record high this year.

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