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Monday, 02 August 2021 17:48

VF untangles global supply chain with isolated product delays

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VF Corp is working through isolated product delays to deal with increasingly tangled global supply chain. As per a Women’s Wear Daily report, compliance of suppliers with local public health advisories and governmental restrictions has resulted in isolated product delays for the company. The resurgence of COVID-19 lockdowns in key sourcing countries has resulted in additional manufacturing capacity constraints during the first quarter. Additionally, port delays, equipment availability and other logistics challenges have contributed to product delays. VF is working with its suppliers to minimize these disruptions and is employing expedited freight as needed, it said.

The company expects to spend more than $35 million this year for quick freight shipments. The company’s net income for the quarter ended July 3 totaled $324.2 million, or 82 cents a share, reversing year-ago losses of $285.6 million, or 73 cents. Adjusted earnings per share from continuing operations rose to 27 cents — well ahead of the 10 cents analysts were looking for on average. Revenues doubled to $2.2 billion from $1.1 billion.

As per Steve Rendle, Chairman, President and CEO, the company remains focused on winning in parts of business, with consumers coming back strong. It plans to take advantage of supply chain savvy and financial strength to keep goods flowing and grab more shoppers.

During the quarter, Vans led the way with sales growth of 110 percent while The North Face was up 93 percent, Timberland gained 70 percent and Dickies rose 61 percent. Supreme’s contribution to VF’s total results for the quarter included $145.7 million in sales, $88.8 million in gross profit, operating income of $31.7 million and 7 cents a diluted share. For the full year, VF is looking for Supreme to contribute revenues of $600 million with 25 cents of earnings per share.