Vans'S Parent Company'S 5 Year Strategic Restructuring Plan Is On The Right Track.

Under the banner of outdoor brand

After changing hands,

The 5 year strategic restructuring plan of the parent group is gradually on the right track.

According to the first quarter earnings report released last night by Wei Fu Group, group sales rose by 21.8% to 3 billion 50 million euros in the three months to March 31st, exceeding analysts' expectations of 2 billion 900 million euros, gross profit margin increased to 50.5%, net profit rose 20.9% to 253 million dollars.

During the period, the wholesale channel sales increased by 17% and retail sales increased by 34%.

The picture shows the main performance data of the group during the quarter.

By Sector:

Including Vans, Timberland, Wrangler and The North Face, etc.

Sales of outdoor sports departments increased by 19% to $2 billion 14 million over the same period last year.

Sales of denim sectors, including Lees, fell by 1% to $639 million;

Sales of Imagewear image clothing department including Red Kap, Bulwark and Majestic increased by 175% to $370 million.

Sales in other sectors fell by 8% to $20 million 285 thousand over the same period.

The picture shows the main brand's performance data of the Wei Fu Group in the quarter.

By brand:

Core brand Vans sales increased by 45% over the same period last year, and the increase was 39% according to the actual exchange rate.

The sales of The North Face increased by 11% compared to the same period, and increased by 7% according to the actual exchange rate.

Timberland sales increased 5%, and fell by 1% according to the actual exchange rate.

Wrangler sales increased by 3%, and the growth rate was 1% according to the actual exchange rate.

Lee sales fell by 6% compared with the same period last year, and fell by 11% according to the actual exchange rate.

The picture shows the main performance data of the group during the quarter.

By Region:

US regional sales rose by 18%, and the growth rate of excluding new brands Williamson-Dickie was 8%.

EMEA sales in Europe, Middle East and Africa surged 33% in the fourth quarter, and the growth rate of new Williamson-Dickie was 12%.

Sales in the Asia Pacific region rose by 17%, of which China's sales rose 19%, and the growth rate of excluding new brands Williamson-Dickie was 2% and 1% respectively.

Sales in the Americas and Europe increased by 22%, excluding the newly acquired brand Williamson-Dickie, the increase was 1%.

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Chief executive SteveRendle said at a conference call after the earnings announcement that the increase in performance during the period was mainly due to the revenue contribution of the group's newly acquired brand Williamson-Dickie, and revealed that the sale of Nautica brand to AuthenticBrands Group was completed in April 30th.

Since Nautica failed to provide sufficient growth momentum in strategy and finance, the group decided to divest the brand early this year.

The cowboy department, including Lee, has become a burden on the growth of the group.

According to the world clothing and shoe net, in April 28th, the group completed the sale of sports licensing business including Majestic brand, and completed the sale of JanSport brand brand Collegiate Business in the fourth quarter of 2017.

At this point, the Group officially withdrew from the licensing business.

At the same time, the group is increasing investment in enhancing brand influence, such as investment in creative marketing, advertising and data analysis, so as to better satisfy consumers' demand for personalization. Vans has launched personalized customization service on its brand website.

Steve Rendle stressed that the sustained explosive growth of Vans has had a positive impact on the performance of The NorthFace and Timberland brands to a certain extent.

Some analysts point out that Vans has won competition under the double attack of Nike and CONVERSE. Now it is a young trend culture brand with an emotional trend. Different consumers love different styles. Vans's positioning is obviously a brand that can make consumers younger, cooler and more personalized.

However, SteveRendle admitted earlier that after nearly 6 years of rapid growth of Vans, it will usher in new challenges.

For outdoor sports brands such as The North Face and Timberland, Steve Rendle said there was still a long way to go before the performance was restored to its original level.

In October of last year, after the new creative director Tim Hamilton, The NorthFace is actively promoting cooperation with Sacai, Mastermind and other street trend brands to enhance its fashion and exposure among young consumers, and its cooperation with Supreme has been maintained for ten years.

Timberland focuses on expanding its product line, and will launch products that can adapt to all kinds of weather.

Steve Rendle said that the above pformation measures will have a certain impact on the future performance of the two brands. The group performance expects that The NorthFace and Timberland will resume growth in the autumn of 2019.

In order to comply with the trend of environmental protection in the global fashion industry, Wei Fu formally signed a partnership with the international anti fur alliance at the end of last year to sign a no fur retailer project, and announced that it would no longer use fur.

Letitia Webster, vice president of global sustainable operations, said the group will continue to work with animal protection organizations to develop products that can replace animal raw materials.

At present, Wei Fu Group is still carrying out the project called "ActingVertical", which shortens the delivery time of products, about 2/3 of the time is used for design and delivery, and the other 1/3 is for product manufacturing.

The company is upgrading the conversion speed of raw materials and finished products and optimizing the location of distribution centers.

In addition, the group has gradually shifted its business focus to direct retail channels and digitalization, and will focus on expanding the Asian market, especially in China, which has become the second largest market for Vans in addition to the US.

Steve Rendle is expected to grow in the 2019 fiscal year for the group's relatively plain cowboy sector.

ScottRoe, chief financial officer, said that the pformation strategy of the group has achieved initial success, but the recovery of the cowboy sector will take some time.

EdYruma, managing director of KeyBanc capital market, believes that WAL-MART, Amazon and other giants continue to launch their own clothing brands, which is one of the reasons why the performance of the Cowboys department, including Lee, has continued to slump. PiperJaffray's analyst, Erinn Elisabeth Murphy, is worried about the profitability of the cowboy sector.

For the 2019 fiscal year, Steve Rendle said it would continue its consumer centred pformation plan, and expects its total annual revenue to be between $13 billion 450 million and $13 billion 550 million.

Dragged down by Lee and other cowboy businesses, although the group's quarterly results exceeded expectations, its stock price fell 2.77% to 76.27 dollars yesterday, and its market value is currently about 30 billion 700 million dollars.

More interesting reports, please pay attention to the world clothing shoes and hats net.