SANTA FE SPRINGS, Calif.–Vans, Inc. (Nasdaq: VANS) announced record financial results for the first fiscal quarter ended August 26, 2000.
Net sales for the quarter increased 21.4% to $100.6 million, compared to $82.9 million for the first quarter of fiscal 2000. Net income rose 28.0% to $7.6 million, versus net income of $5.9 million in the same period last year, and diluted earnings per share increased 23.8% to $0.52, versus diluted earnings per share of $0.42 in the first quarter of fiscal 2000.
“Vans’ first $100 million quarter is a great testament to the sports and lifestyle positioning of our brand and an exciting accomplishment for our team,” said Gary H. Schoenfeld, President and Chief Executive Officer of Vans. “More importantly, we continue to translate these sales gains into strong earnings growth. Comp store sales increased to 15.3% during the key six week back-to-school period through mid- September and Holiday and early Spring bookings are up more than 20%.”(1)
For the first quarter, total U.S. sales, including sales through Vans’ U.S. retail stores, increased 32.9% to $72.9 million, versus $54.8 million for the same period a year ago. U.S. wholesale sales in the first quarter increased 33.5% to $46.9 million, versus $35.1 million a year ago. Sales through the Company’s U.S. retail stores increased 31.8% to $26.0 million in the first quarter of fiscal 2001, from $19.7 million for the same period a year ago. Comparable store sales for the first quarter were up 8.6% versus the same period last year, the twenty-third consecutive quarter of such increase. Total international sales, after giving affect to a 14% decline in the Euro, were essentially flat at $27.7 million versus $28.1 million a year ago. On a constant dollar basis, international sales would have been up 8%.(1)
Commenting on the Company’s sales for the quarter, Mr. Schoenfeld stated, “Our wholesale business continues to perform well both in the U.S. and overseas, and our retail stores had another strong quarter with a great back-to-school. Of particular note beyond our base men’s business, the Upland(TM) shoe has performed extremely well in women’s and our Geoff Rowley shoe has been our strongest launch in independent board shops in quite a few years. The fact that last week Geoff was named Thrasher Magazine’s Skater of the Year should only add to the initial success.”(1)
Gross margins for the quarter increased 140 basis points to 44.0% vs. 42.6% last year, primarily due to improved margins at retail and changes in channel mix. Inventory increased to $59.9 million from $46.1 million year-over-year primarily due to continued growth of the wholesale business in the U.S, the addition of 16 retail stores and four skateparks, and a $2 million increase in inventory to support sales through the Company’s joint venture in Latin America.
Mr. Schoenfeld concluded, “The Company’s financial results over the past several quarters continue to demonstrate the increasing breadth of our business and the potential to leverage the leadership position of the VANS brand across a broader base of products and categories. In addition to furthering the growth of our men’s business, we see exciting opportunities in our women’s Skate and Cali(TM) categories as well as with the launch of our outdoor footwear, and the growth of apparel and accessories. Worldwide bookings are up for Holiday and Spring, and we believe that we are in a very good position to continue to capture market share and add to our growth in sales, earnings and shareholder value.”(1)
Vans, Inc. is a leading branded sports and lifestyle company for the youth market. Vans reaches its 10 to 24 year-old target consumers through the sponsorship of Core Sports,(TM) such as skateboarding, snowboarding, surfing and wakeboarding, and through major entertainment events and venues, such as the VANS Triple Crown(TM) Series, the VANS Warped Tour,(TM) the VANS World Amateur Skateboarding Championships, thhe world’s largest VANS skate parks, and the VANS High Cascade Snowboard Camp,(TM) located on Mt. Hood. The Company operates 137 retail stores in the U.S. and Europe, and designs, markets and distributes active-casual footwear, clothing and accessories, performance footwear for Core Sports, (TM) snowboard boots, step-in snowboard boot bindings, and outerwear worldwide. Vans’ Internet address is www.vans.com.