VF Corp. has released its results for its 2nd
quarter of financial year 2023 (Q2FY23) ended October 1, 2022. The financial year runs from April 2022-March 2023.
In Q2FY23, sales declined by 4% to US$ 3.1 billion, with the corporations big 4 brands down 5%. The North Face achieved sales of $1.0 billion, up 8%, whilst Vans sales at $1 billion saw the brand down 13%. Operating margin for the reporting period was 2.9%, down 2,040 basis points. Adjusted operating margin was 12.3%, down 440 basis points.
In the first half of the financial year (H1FY23) VF Corp., Denver, CO/USA, saw sales decline by 1% to $5.3 billion, with the big 4 brands down 2%. Operating margin was 0.5%, down 1,460 basis points and adjusted operating margin 8.5%, down 420 basis points.
To help mitigate the spread of Covid-19 and in response to public health advisories and governmental actions and regulations, VF has modified its business practices in certain locations, including the temporary closing of offices and retail stores, instituting travel bans and restrictions and implementing health and safety measures including social distancing and quarantines. The majority of VF's supply chain is currently operational.
Raw material suppliers in China are currently operational, though the 8-week lockdown in China during VF's first quarter resulted in logistics challenges which continue to contribute to ongoing product delays.
Suppliers are complying with local public health advisories and governmental restrictions. Most final product manufacturing and assembly suppliers are largely back to normal operating levels. The company is working with its suppliers to minimize disruption and is employing expedited freight strategically as needed. Its distribution centers are operational in accordance with local government guidelines while maintaining enhanced health and safety protocols.
The North Face, Vans = registered trademarks