VF Corporation's revenue fell 9% in the first quarter to $1.9 billion. The company reported an adjusted loss per share of 33 cents, reducing gross margin by 80 basis points to 52% from 52.8% a year ago. However, the losses were smaller than analysts had expected, retaildetail.eu reports.
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VF Corporation no longer has the Supreme brand
The biggest growth was in China, where sales (excluding currency effects) rose by 4% thanks to improved product offerings and new collections. The group also managed to reduce inventory by almost a quarter. CEO Bracken Darrell, who has been on the board for a year, has also taken strategic steps, selling streetwear brand Supreme and implementing a business reorganisation, including in its European offices. In early December last year, the group announced a strategic reorganisation that resulted in the layoff of 500 employees.
Supply disruptions
However, sales at The North Face fell 3 percent, while Vans fell 21 percent. Like other international fashion companies, VF Corp is also feeling the effects of political unrest in Bangladesh: about 15 percent of its production comes from that country, which is causing a series of supply disruptions.
