VF Corp., parent company to The North Face, Eastpak and Jansport is looking to its Outdoor Coalition to post any good news for the quarter after VFC reported that earnings shrunk 15.7% to $74.9 million, or 68 cents per share.
Sales dipped 2.2% to $1.13 billion from $1.16 billion in the year-ago quarter. Still, VFC beat the average analyst estimate of 60 cents.
Sales of The North Face, JanSport and Eastpak brands rose 12% in the quarter, driven by double-digit sales increases of North Face products. Domestic shipments for TNF grew 14% and were up 32% in Europe. The packs business was also strong, with Eastpak jumping 25% for the quarter. VFC said they had to airlift product in to meet Jansport demand.
The back half looks pretty bright for the ODC as well, with “firm” bookings in packs up 15% and The North Face showing a 35% jump in fall futures.
The strong results and bright outlook has the parent company investing heavier in the business going forward to support the momentum at TNF.
In an exclusive interview with SPORTS EXECUTIVE WEEKLY, TNF president Mike Egeck said the additional commitment to the brand is due to improving results.
“We are going to focus on grassroots events for our premium specialty shops along with some additional media buys in core outdoor books”, said Egeck.
“Specialty outdoor shops are growing as a percentage of our distribution. They are now 56% of our total business.” He also indicated that they are receiving increased requests for more “fixtured areas” at retail.
TNF currently supports over 300 fixtures areas that feature The North Face product.
“Weve been very busy the warehouse has three 8-hour shifts going each day, said Egeck. “From the second half of June and into this month, our customers are telling us that the retail environment is looking good.”
Egeck is projecting that TNF sales for the year should be “up in the 20-25% range” for the year.
In discussing the overall market, Mr. Egeck concurred that the outdoor is a bit “insulated” from the economic and retail downturn experienced in other sectors. He said that due to the nature of the consumer in the sector, it would take “a dramatic turn in personal lifestyle” to see the avid outdoor athlete pull back.
“Our customers have made us an integral part of their lifestyle”, said Egeck, adding that he thinks the outdoor retail sector will outperform the overall retail market as it recovers.
>>> Amazing how things work when a sport or activity becomes a lifestyle…
