Despite a bit of a slowdown, North Face (TNF), Timberland
(TBL) and Vans reported positive earnings for global apparel
company V.F. Corp (NYSE:
) during its conference call last Friday. With outdoor conditions
impacting shares heavily this year, it is no wonder that cold
weather gear distributors have witnessed weaker quarters.
However, VFC won't let a little bit of sunshine ruin its diverse
empire, as sneakers and denim sales improved immensely.
Due to the lack of snow the country saw this winter, TNF and
TBL experienced decreased interest from consumers as Q1
progressed. Both brands were hyped in previous quarters, but
neither company saw impressive numbers this time around. However,
Vans sneakers picked up the slack with 27% constant-currency
"[This] authentic $1+ billion action sports brand should
continue to garner investor focus given the own retail expansion
(7 U.S. stores opened YTD) and strong growth in e-commerce (+40%
in 1Q)," ISI Group said in a recent research report. "[We] are
becoming increasingly intrigued by the long-tailed growth
opportunities for the brand globally."
With strong revenue progression and smartly played mergers and
acquisitions, analysts were obviously impressed with VFC's
ability to resist Mother Nature's trickery this season. The
corporation is consistently seeing improvement in its Jeanswear
sector, with Lee and Mass Market bumping growth up +9%.
Also remaining a dominant force amongst the jean category is
VFC competitor True Religion Apparel (NASDAQ:
). According to Brean Murray Carret & Co., the company is
still one of the top players in the men's denim group. It is
expected that the earnings call, scheduled for tomorrow, May 1st,
could be a catalyst for material reward.
The weather may be improving daily, but that doesn't mean men
and women are ready to let their legs show. American consumers
are also covering up with PVH Corp's (NYSE:
) many well-known denim brands. Calvin Klein and Tommy Hilfiger
continue to stay durable in the country, with Calvin particularly
staying in the high-single-digit positive comp range.
Jean brands are continuing to make their presence known in the
retail market at a time when dresses, shorts and skirts are being
snatched up across the nation. Day to day weather can change
drastically, but with other companies earnings calls scheduled
near-term, the disappointing cold weather season should not be a
further catalyst for weaker sales. With springtime colors being
introduced and pasty white legs requiring further cover, the jean
market is sure to see continued success over the next few
VFC is currently trading at $152.63, up +51.87% YoY, while PVH
is trading at $88.93, up +26.3% YoY. Comparatively, TRLG is
trading at $26.98, up +10.79% YoY.
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