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VF’s HY1 jeanswear profits fall

For the first half of 2017, VF’s sales value stood at $4941.26 million. Improvements were seen in outdoor and action sports and the image wear segments. Both increased around three per cent. These were the only bright spots in the otherwise bleak picture. Jeanswear, once the mainstay of VF, was down a significant 6.83 per cent and seems to be sliding down with each passing quarter. Outdoor and action sports are now the mainstay of VF with about 64 per cent of sales.

Earnings declined seven per cent. Outdoor and action sports managed to keep their profitability. The major decline has been reported in jeanswear, which is 18 per cent. Jeanswear profits fell three times as fast as jeanswear revenues. Per unit profit of jeans has fallen to drastically low levels.

Sportswear profits also fell by seven per cent by the end of the half year in 2017. Based on the strength of the first half of 2017, and its expectations for the second half of the year, VF Corp is making growth-focused investments in its largest brands and platforms to generate additional value for shareholders both in the near and long term. VF’s second quarter revenue from continuing operations increased two per cent.