The Outdoor Brand The North Face Accelerated Its Performance And Achieved 18 Years Of Success.

Continue to rely on Vans's strong performance, and the unexpected acceleration of the The North Face northern brand, the US apparel giant VF Corp. (NYSE:VFC) rich group delivered the expected three quarter results before Friday, and raised its annual earnings forecast. The news stimulated the stock market to soar by more than 10%, and the opening rate rose by more than 15%, the largest single day gain since March 2000.

In the three quarter of 2019 fiscal year ended December 29th, the US group recorded a net profit of $463 million 500 thousand or earnings per share of $1.16, a net loss of 90 million 269 thousand US dollars or earnings per share of US $-0.18 in the same period last year. After adjustment, the net profit of US $1.31 EPS is better than that of Zacks's expected US $1.09, and Refinitiv expects us $1.10.

The Group expects EPS $3.73 for the entire year, including an additional investment equivalent to US $0.09 per share, which was expected to be US $3.65.

In the three quarter, fan's brand growth rate of 25% and 27% and fixed exchange rate growth were not unexpected. In the first two quarters, the fixed exchange rate of the brand grew by 32% and 27%, respectively. However, the growth rate of the 14% quarter and 16% of the northern brand in the three quarter and the fixed exchange rate were much higher than that of the market. The growth rate of the fixed exchange rate in the one or two quarter was 5% and 5% respectively.

Group Chairman, President and chief executive officer Steve Rendle said that in the past two years, the reform in the North has achieved some results and congratulated the brand team.

In the three quarter, the DTC and wholesale businesses in the North American market recorded an increase of 9% and 25% respectively, pushing the North American market up 15% in the current quarter, while there was only zero growth and 3% growth in the first quarter and the two quarter.

He also said that the fourth quarter has not changed its brand strength so far, and is confident that the next fiscal year will continue to grow in high digits.

Analysts also focused on the northern brand at the financial conference. Chief financial officer Scott A. Roe said 1H and 2H showed two completely different situations in the north, and the right side accelerated significantly.

Steven Rendle said the three quarter results were based on the intense work of the northern brand over the past 2-3 years, including cleaning up the market, subdividing users and providing the right products for the major large multinational retailers. He also said that the success of the FUTURELIGHT series proved that the difference in competition brought by the North's innovation ability for the brand continued to make the brand a leading brand in the outdoor market, and promised that the brand could maintain the compound organic growth of 6-8% in the next 5 years.

For the sluggish Timberland Tim Pak LAN brand, Steven Rendle said it hopes to see the brand's performance after the top two brands accelerate.

In the first three quarters, the growth rate of fixed exchange rate of Tim Pak LAN recorded an increase of -1%, -1% and 3% respectively.

The three quarter of the new venture, Kontoor Brands and Inc., which is about to be split and formed as a new company, has remained unchanged in the 3% quarter, with a fixed exchange rate decline of 3% and a drop of 5% to $657 million 900 thousand in actual sales.

Including Lee, Wrangler, Rock & Republic, VF Outlet and other well-known brands of cowboy business, the past three years has been a drag on the group.

Since its establishment in 1899, the group has undergone two key product pformations.

"VF" is the abbreviation of Vanity Fair, the group's lingerie brand Vanity. After buying Lee and Wrangler in 7 and 80s, the group claims to have 25% of the market share of the American jeans market, and the cowboy garment as the core business also contributed more than half of its income and profits to the group in 2002.

However, in the new century, professional Jeans Brands are suffering from the erosion of low priced products in fast fashion industry, including Levi 's Levi's.

However, the latter has resumed growth in the past two years, and the parent company Levi Strauss & Co. is expected to achieve another $5 billion sale after its peak in 1999s. It is rumoured that it has hired Goldman Sachs Group Inc. Goldman Sachs and JPMorgan Chase & Co. Morgan chase as a consultant to prepare for listing in the first quarter of 2019 with a valuation of more than US $5 billion, raising $6-8 billion.

Due to the partial shutdown of the US government, the split and listing of Kontoor Brands, Inc. and the IPO plan of Levi Strauss & Co. may be postponed.

The Chinese market, which was concerned about the market, recorded a 23% fixed exchange rate growth in the three quarter, a sharp increase compared with 12% in the two quarter, of which wholesale business surged 35%. Even in the downturn of other markets, the Chinese market rose 30% in the three quarter.

Scott Roe, chief financial officer, said that China's market group's strategic investment focus and accelerated growth gave the group confidence in the future growth of the market.

The chief executive, Steve Rendle, said that overall, despite the slowdown in China's economy, the growth is still good. For target consumers, the group's pricing in the Chinese market can continue to resonate, and the display of lifestyle products and seasonal products will enable the company to demonstrate sustained competitiveness.

He also reminded investors that the penetration and recognition of the group's brand in the Chinese market still have a huge rise in space.

In the three quarter, the prestige Group recorded a revenue of US $3 billion 940 million 200 thousand, an increase of 8% over the same period of 3 billion 649 million 300 thousand in the 2018 fiscal year and a 10% increase in fixed exchange rate. If we exclude the acquisition business, two data are 7% and 9% respectively.

During the period, gross profit margin improved by 40 basis points to 51.9%, adjusted by 60 basis points to 52.2%, and operating profit margins improved by 170 basis points to 15%. The adjusted operating margin of 16.6% rose by 270 basis points over the same period last year, excluding the adjusted operating profit margin by 280 basis points to 16.8%, and the increase in operating profit was 22.1% to the dollar. After adjustment, the growth rate increased to $70, including the US dollar contribution from the acquisition business.

No Agency analyst Christina Ng released a report on Friday, praising the three quarter's performance in the north and maintaining its previous view. The US giants rely on fan's unique display of great worries. The group's stock price fell after the two quarter results, and the 52 week low of 67.18 dollars in mid December has proved.

"The rebound in the three quarter of the Chinese market is hard to see at present, the actual growth rate is 18% or even lower than that in the two quarter, indicating that the impetus of the exchange rate factor is higher than the fundamentals of the business itself, while the discount rate in the northern part of the holiday season is also good for performance assists."

In the two quarter, after the downgrading of the prestige rating from "holding" to "neutral" and the target price from $85 to $78, No Agency maintained its views on the US giants on Friday.

Canaccord Genuity analyst Camilo Lyon said that the marketing and investment of Wei Fu Group in China is creating a growth flywheel effect. He also agreed with the view of Steve Rendle that the recognition of the group brand in the Chinese market still has great room for improvement.

While the three quarter results were released, the group increased its annual revenue forecast from US $13 billion 700 million to US $13 billion 800 million, an increase from 11% to 12% (fixed exchange rate 13%), of which the outdoor business revenue grew from the expected 7-8% to 8%. The revenue growth of the extreme sports business unit was increased from the expected 14-15% to 16%; the revenue from the tooling department increased from the previous expected 35% to 39%; the cowboy business revenue growth forecast was downgraded from -2--1% to -3%.

At the same time, influenced by the strong US dollar, Wei Fu reduced the expected growth of international business revenue from 12-13% to 10-11% for the whole year. The growth rate of DTC channel was raised from 12-14% to 13-14%, while the digital channel maintained the expected growth rate of 30+%.

The gross profit margin of adj is expected to be 51% in the whole year, and the adj operating profit margin is expected to improve by 90 basis points to 13.6%.

On Friday's closing, VF Corp. (NYSE:VFC) shares rose 12.39% to $82.34, stimulating the stock to win the S & P 500 retail index (XRT) so far this year, which has risen 9.44% since the beginning of the year, while the group has recorded a 15.42% increase. However, before Friday, the share price of the fortune shares was slightly higher than the 500 index of the S & P 500.

Source: no fashion Chinese net: He Wei