VF Corp Raises Revenue Forecast as Online Sales Boom

Apparel maker VF Corp raised its full-year forecast for revenue on Wednesday, as consumers working or attending classes from home during the Covid-19 pandemic boosted online sales of its sportswear and athleisure apparel.

A renewed focus on health and fitness during the pandemic has led more people to work out at home or adopt socially distant outdoor exercises such as running or biking, boosting sales for VF and other sportswear makers, including Nike Inc and Under Armour Inc.

VF’s direct-to-consumer digital sales jumped 53 percent in the third quarter.

The health crisis has pushed retailers to accelerate the shift to e-commerce operations as store closures earlier in the year bruised brick-and-mortar sales.

VF, which recently closed the acquisition of streetwear brand Supreme, now expects fiscal 2021 revenue between $9.1 billion and $9.2 billion, compared with its prior estimate of at least $9 billion and a Refinitiv IBES estimate of $9.19 billion.

It also expects fiscal 2021 adjusted earnings per share of about $1.30, compared with its prior estimate of at least $1.20 and a Refinitiv IBES estimate of $1.36.

The Denver, Colorado-based company’s net revenue, however, fell to $2.97 billion from $3.38 billion, narrowly missing the average analyst estimate of $3 billion.

Excluding one-time items, VF earned 93 cents per share, compared with the average analyst estimate of 90 cents.

By Mehr Bedi and Praveen Paramasivam; editor: Devika Syamnath.