The North Face has reorganized its research and development efforts into four categories: outdoor, action sports, performance athletics and youth. VF Corporation’s star brand delivered a sales increase of more than 40 percent in dollar terms during the second quarter ended June 30, rising at similar rates in the U.S. market and in the rest of the world. Sales grew by 17 percent in the second quarter to $523.5 million for VF ’s entire Outdoor Coalition, which comprises TNF along with JanSport, Vans, Reef, Napapijri, Kipling, Eastpak and Eagle Creek. Vans’ sales were up by 14 percent, with an increase of about 20 percent for its retail operations. On the other hand, the operating margin of the Outdoor Coalition dropped slightly to 9.8 percent - squeezed by the seasonality of the business, investments in advertising and the cost of starting up new stores. Twelve new stores were opened during the quarter for Vans, TNF and Napapijri, but they will contribute to push sales and profits in the second part of the year, especially in the critical 4th quarter (more on VF and other outdoor companies in The Outdoor Industry Compass).

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