VF with revenue growth in strong momentum

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Full year fiscal 2019 revenue from continuing operations increased by 12% to 13.8 billion US dollars; excluding acquisitions net of divestitures, revenue increased by 7%

“Fiscal 2019 marked one of the most significant periods of transformation in VF’s 120-year history, highlighted by our announcement to spin off our Jeans business as an independent, publicly traded company”, commented said Steve Rendle, Chairman, President and Chief Executive Officer, adding: “Despite the tremendous workload, we remained sharply focused and delivered another year of strong financial results and top quartile returns to our shareholders.”

“As we enter fiscal 2020, our portfolio is well positioned, and our growth and momentum are strong, fueled by the investments we are making in support of our long-term strategy. The bold decisions we continue to make to evolve our company underpin the transformational journey we’re on to deliver on our commitment to be a purpose-led, performance-driven and value-creating enterprise capable of delivering sustainable long-term shareholder value”, Rendle concluded.

Fourth Quarter Review

Revenue increased by 6% (up by 9% in constant dollars) to 3.2 billion US dollars, driven by VF’s largest brands, international and direct-to-consumer businesses, as well as strength from the Active, Outdoor and Work segments. Excluding Kontoor Brands, revenue increased by 8% (up by 12% in constant dollars). Operating income on a reported basis was 194 million US dollars. On an adjusted basis, operating income declined by 5% to 313 million US dollars, including a 7 million US dollars contribution from acquisitions net of divestitures. Excluding Kontoor Brands, adjusted operating income increased by 3%. Earnings per share was 0.32 US dollars on a reported basis. On an adjusted basis, earnings per share declined by 10% (4% in constant dollars) to 0.60 US dollars, including a 0.01 US dollars contribution from acquisitions net of divestitures, and 0.04 US dollars per share (20 million US dollars pretax) of incremental investment relative to the company’s prior outlook provided on the 18th of January 2019.

Full Year Review

Revenue increased by 12% (up by 13% in constant dollars) to 13.8 billion US dollars. Excluding acquisitions net of divestitures, revenue increased by 7% (up by 8% in constant dollars), driven by VF’s largest brands, international and direct-to-consumer businesses, as well as strength from the Active, Outdoor and Work segments. Excluding Kontoor Brands, revenue increased by 16% (up by 18% in constant dollars), or 10 US dollars (by 11% in constant dollars), excluding acquisitions net of divestitures. Operating income on a reported basis increased 10 percent to 1.7 billion US dollars. On an adjusted basis, operating income increased by 21% to 1.9 billion US dollars, including a 73 million US dollars contribution from acquisitions net of divestitures. Excluding Kontoor Brands, adjusted operating income increased by 32%. Earnings per share on a reported basis increased by 63% to 3.14 US dollars. Adjusted earnings per share increased by 20% (up by 22% in constant dollars) to 3.78 US dollars, including a 0.15 US dollars contribution from acquisitions net of divestitures. Relative to the company’s original outlook provided on the 4th of May 2018, full year fiscal 2019 earnings per share included a 0.13 US dollars (about 65 million US dollars pretax) impact from incremental investments.

Adjusted Full Year Outlook

VF’s outlook for full year fiscal 2020 includes the following: Revenue is expected to be in the range of 11.7-11.8 billion US dollars, reflecting growth of approximately 5% to 6%, or approximately 7% to 8% on a constant dollar basis excluding the impact of acquisitions net of divestitures. By segment, revenue for Outdoor is expected to increase approximately 4-5%, or approximately 5-6% on a constant dollar basis, excluding the impact of acquisitions; revenue for Active is expected to increase approximately 6-7%, or approximately 9-10% on a constant dollar basis excluding the impact of divestitures; and, revenue for Work is expected to increase approximately 3-5%, or approximately 4-6% on a constant dollar basis, excluding the impact of divestitures. International revenue is expected to increase approximately 4-6%, or approximately 7-9% on a constant dollar basis, excluding the impact of acquisitions net of divestitures. By geographic region, European revenue is expected to increase approximately 1-3%, or approximately 5-7% on a constant dollar basis, excluding the impact of acquisitions net of divestitures. In the Asia Pacific region, revenue is expected to increase approximately 12 percent to 14 percent, or approximately 14-16% on a constant dollar basis. And, in the Americas (non-US) region, revenue is expected to increase approximately 2-4%, or approximately 3-5% on a constant dollar basis. Revenue growth in the Americas (non-US) region is expected to be negatively impacted by approximately 6 percentage points as a result of planned strategic business model changes. Direct-to-consumer revenue is expected to increase approximately 9-11%, or approximately 10-12% on a constant dollar basis, including 25 percent growth in digital. Adjusted earnings per share is expected to be in the range of 3.30 US dollars to 3.35 US dollars, reflecting estimated growth of approximately 15-17%, or approximately by 17-19% on a constant dollar basis, excluding the impact of acquisitions net of divestitures.

 

Source: www.worldfootwear.com