Impressive Q2 performance
A few days ago, V.F. Corp. (NYSE:VFC) posted its strongest first half organic revenue growth since 2012 (+9%), as its Q2 growth accelerated to 10% from 8% in Q1. After a somewhat mild growth profile in H1 last year and some areas of softness in Q1 this year (when most outdoor brands slowed in Europe and The North Face decelerated to mid single-digit growth in the U.S), this Q2 performance was a pleasant surprise, showing that recent product introductions are paying off.
Interestingly, all coalitions and businesses contributed to VFC's quarterly strength. While the Outdoor coalition (The North Face, Vans, Timberland…) kept growing at an impressive double-digit pace (+16% at constant FX vs. +10% in Q1), Jeanswear, which had long been a laggard, confirmed its improved momentum with 4% revenue growth and an upgraded FY guidance (to mid single-digit revenue growth from low single-digit) thanks to recent product introductions and a better denim environment.