VF Corporation announces record results for the third quarter of 2011, yet another confirmation of the strength of the outdoor industry in these challenging economic times. Revenues rose 23 percent to $2.75 billion from $2.23 billion in 2010. The Outdoor and Action sports brands show continued momentum, with total global revenues up 37 percent reflecting strong organic growth of 22 percent.
This organic growth in Outdoor and Action Sports is aided by the recent acquisition of Timberland and Smartwool, which have contributed $163.6 million to revenues. Excluding Timberland, organic revenue growth in the quarter was 16 percent.
Organic growth in the coalition's America's and international businesses continued at double-digit rates, rising 13 percent and 38 percent respectively. On a constant currency basis, organic revenue growth internationally was 28 percent.
Most Outdoor and Action Sports brands achieved double-digit growth in the quarter, with the two largest brands—The North Face and Vans—achieving global revenue growth of 22 and 25 percent, respectively. Growth for both brands was well-balanced, with strong gains achieved across their wholesale, direct-to-consumer, domestic and international platforms.
This organic growth, as well as the benefit of the Timberland acquisition, has put total revenue expectations at a rise of 22 to 23 percent in 2011. Because more than half of Timberland's revenues on an annual basis are from international markets, international revenues are now expected to grow by approximately 40 percent this year, and they should account for 34 percent of total revenues (up from 30 percent in 2010).