VF Corp. today reported first-quarter earnings today (July 30, 2021) and for the first time since the acquisition of Supreme provided feedback on the streetwear brand’s sales performance. During April-June, Supreme’s contribution to VF’s results included $145.7 million in sales, $88.8 million in gross profit and operating income of $31.7 million. Providing guidance on full-year results, the company predicted Supreme’s would contribute $600 million in revenue.
Noting that VF Corp.’s global supply expertise helped Supreme navigate through issues created by the pandemic, VF Corp.’s CEO Steve Rendle stated, “Where we’re connecting most effectively is with our supply chain team, it couldn’t have come at a better time.”
Total company revenue during the first quarter was $2.19 billion, up from $1.08 billion last year, a period roughed up by door closures caused by COVID-19. Positives were driven by the company’s four biggest brands, Vans, The North Face, Timberland and Dickies, whose combined sales were up all of which were up 94-percent versus last year.
Commenting on the quarter, VF Corp.’s CEO Steve Rendle, stated, “We continue to see broad-based momentum across the portfolio, supporting an increase to our fiscal 2022 outlook for each of our largest brands. Though the first quarter is a relatively small portion of our total year, this strong start reinforces my confidence in our ability to accelerate growth through fiscal 2022 and beyond.”
VF Corp. announced in November 2020 that it had acquired Supreme from the Carlyle Group in a deal valued at $1.9 billion. At the time it acquired the streetwear giant, VF Corp. reported Supreme had generated revenues of $500 million over the year prior with gross margins of over 60 percent. The company anticipated Supreme’s sales would grow 8-10 percent over the next five years through expanded direct-to-consumer and global sales.