(Reuters) -VF Corp beat first-quarter revenue estimates on Wednesday, helped by an uptick in demand for its apparel and footwear products, sending its shares up about 15% in premarket trading.
The Denver, Colorado-based company, currently undergoing a turnaround, also posted a narrower loss than expected, benefiting from lower promotions and product costs.
VF Corp’s efforts to introduce new collections across brands helped boost sales, with revenue for the North Face brand rising 6%, while Timberland surged 11%, following declines in the previous year.
The company, which relies heavily on Southeast Asian manufacturing, has been taking steps to soften the tariff impact, such as speeding up production and shipments into the U.S. during the 90-day pause, working with suppliers to cut costs and exploring strategic pricing moves.
About 85% of its products are manufactured in Southeast Asia and Central and South America, with Vietnam, Bangladesh, Cambodia and Indonesia as its top four production countries, while sourcing less than 2% from China.
Earlier this month, Trump announced a 20% tariff on Vietnamese goods, down from an earlier 46%, and a 40% levy on trans-shipments through Vietnam, sparking fresh concerns for apparel makers that depend on the region.
The company’s revenue of $1.76 billion for the quarter ended June 28 beat estimates of $1.70 billion, according to data compiled by LSEG.
It posted a quarterly loss of 24 cents per share on an adjusted basis, compared with an estimated loss of 34 cents per share.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Vijay Kishore)
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