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Oct 02, 2021
VF Corp Q2 2022 Earnings Report
VF Corp experienced revenue growth and earnings per share increase in Q2 2022.
Key Takeaways
VF Corporation reported a strong second quarter with revenue increasing by 23% to $3.2 billion and adjusted earnings per share increasing by 66% to $1.11. The company reaffirms its full year fiscal 2022 earnings outlook.
Revenue from continuing operations increased 23 percent to $3.2 billion.
Gross margin increased 290 basis points to 53.7 percent.
Operating income increased 56 percent to $534 million.
Adjusted earnings per share increased 66 percent to $1.11.
VF Corp
VF Corp
VF Corp Revenue by Segment
Revenue by Segment
Outdoor segment Revenue
CapyFin.comActive segment Revenue
CapyFin.com Forward Guidance
VF's full year outlook assumes no material deterioration to the company's current business operations as a result of COVID-19 and related governmental actions and regulations. Revenue is expected to be approximately $12.0 billion, reflecting growth of around 30 percent, including an approximate $600 million contribution from the Supreme® brand. Adjusted earnings per share is expected to be around $3.20, including an approximate $0.25 contribution from the Supreme® brand.
Positive Outlook
- Revenue is expected to be approximately $12.0 billion, reflecting growth of around 30 percent, including an approximate $600 million contribution from the Supreme® brand.
- Revenue for Outdoor is now expected to increase between 25 percent and 27 percent.
- Revenue for Active is now expected to increase between 35 percent and 37 percent.
- Revenue for Work is now expected to increase between 19 and 21 percent.
- Adjusted gross margin is expected to be around 56.0 percent.
Challenges Ahead
- Direct-to-consumer revenue is now expected to increase between 34 percent and 36 percent versus the previous expectation of 39 percent and 41 percent.
- Digital revenue growth of about 20 percent versus the previous expectation of 29 and 31 percent.
- Assumes no material deterioration to the company's current business operations as a result of COVID-19
- Continued port congestion, equipment availability and other logistics challenges have contributed to increasing product delays.
- COVID-19 uncertainty continues, VF expects ongoing disruption to its business operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income