August 13, 2018
The tax free spin-off to shareholders will create two public companies with the existing VF Corp. keeping the Outdoor Group headed by The North Face and Timberland and the Active Group headed by Vans as well as the Workwear group with Williamson-Dickies and the Imagewear business.
The Chinese footwear and retail giant saw comprehensive net income drop 59% to $130,487,000 from $318,528,000 on 7% higher revenues of $4,769,353,000 up from $4,448,172,000 driven by a 27% gain from the Pou Sheng retail operation.
Comprehensive net loss was ¥151 million ($1.4 mm) against income of ¥968 million for the fiscal first quarter ended Jun. 30 pulled down by a ¥1.3 billion negative swing in equity method accounting for the company’s share of owned entities.
The National Retail Federation now sees 2018 retail sales increasing at least 4.5% this year, up from its previous estimate of a 3.8% to 4.4% range, boosted by the economic stimulus from the Tax Act.