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cheap moncler coats for women Corporation (VFC) reported impressive results in Q3. Compared to the corresponding period of 2016, revenue increased 4% but was negatively affected by a shift in timing of the fall order book, which had a 3% impact on revenue. The growth rate, both reported and normalized, highlights a significant acceleration cheap moncler jackets mens on a QoQ basis. Although the company mentioned a 6% “combined growth rate for its big three brands,” we know that such a high growth was almost exclusively a result of the strong momentum in the Vans business. cheap moncler coats for women

moncler jackets outlet online The North Face experienced a 3% decline in revenue, while Timberland contracted 2%. When I read that the company’s results were driven by a combined growth of its three main brands, I thought they were all delivering solid numbers, which is very different from what happened. Vans was actually the only strong performer ( 26%), with the other two brands up only 3% on a normalized basis. moncler jackets outlet online

Moncler Factory Outlet Vans’ performance has been great, there is no doubt. The division achieved a record growth in the quarter as revenue increased 26% with strength across all regions and channels. Revenue in the Americas grew 22%, Europe increased 39% and Asia Pacific grew 23%. The Direct to Consumer channel increased more than 30% including almost 30% comp growth and an outstanding 60% growth in the digital channel. Wholesale increased 19% with moncler usa mid single digit growth in the Americas and more than 35% growth internationally. Moncler Factory Outlet

moncler outlet usa Performance at the other divisions was nothing particularly exciting. Timberland grew 3% if we consider the 5% impact of the shift in the fall order book, and so did The North Face. The other divisions showed mixed performances, with Wrangler up 4%, Lee declining 8%, the Workwear business up 11%, Nautica flat and Kipling Americas up low single digits. That compares to our previous expectation of $11.85 billion. Our increased revenue outlook is driven by our core growth engines, Outdoor Action Sports, most notably Vans, D2C, particularly digital and broad based strength across our international business. Our revenue outlook continues to contemplate about $200 million contribution from Williamson Dickie. moncler outlet usa

moncler outlet store Gross margin is expected to approximate 50% which includes 50 basis point headwind from FX. This represents 50 basis point improvement relative to our previous outlook of 49.5%. Adjusted operating margin is now expected to be about 13.4% versus the previous estimate of 13.7%. This includes a 50 basis point negative impact from changes in FX as well as the impact of an additional $25 million investment. Excluding the impact of Moncler Outlet online Williamson Dickie, we expect our adjusted moncler sale operating margin to be about 13.6%. Adjusted EPS is now expected to be $3.01, up 1% on a reported basis or up 6% on a currency neutral basis, relative to the 2016 adjusted EPS of $2.98. Our outlook includes the $0.05 of additional investment, as well as a $0.02 contribution from Williamson Dickie. As a reminder, our prior outlook was $2.96. moncler outlet store

moncler outlet ny The combination of high growth and raised guidance contributed to improving the already positive sentiment on VFC, triggering a small rally after the earnings release. VFC’s business is in good shape for sure and both results and guidance confirm it. The YoY growth rate is at the highest point of the cheap moncler coats mens last 9 quarters and at the highest point of the last 11 quarters if we use normalized numbers. Gross margin also expanded a bit thanks to the positive contribution of higher full price sales (mainly at Vans) but overall profitability still “suffers” from the high investments in the DTC channel moncler outlet prices and was negatively affected by forex headwinds. moncler outlet ny

moncler chicago Expansion Of The Omnichannel Model We can’t approach the analysis of a stock in the fashion/apparel industry without mentioning the secular trend that sees an increasing shift to an omnichannel business model with an increasing penetration of digital and cross channel commerce at the expense of traditional stores. This transition moncler womens jackets to an omnichannel environment is usually neutral or positive for brands and negative for third party moncler uk outlet retailers. shipping costs) and more competition online, brands have more control over prices and supply, and can benefit from selling directly to consumers and, therefore, cutting “middleman” costs. is expanding its online business discount moncler jackets with a good degree of success. In Q3, the digital segment grew more than 20%, with a 12% growth in North America and an outstanding 40% growth in Europe. This is in contrast with the wholesale segment, which declined 6%. moncler chicago

moncler jackets mens It’s important to understand what’s the impact of the transition to an omnichannel model for the business before trying to foresee the fundamental trends. Corporation doesn’t disclose margins of the digital segment cheap moncler jackets womens and never speaks clearly about it. Nonetheless, there is an important passage in the last earnings call that indicates the digital channel should be accretive to profitability:And then Scott on the D2C, from a margin standpoint. I know, you talked about it being a benefit to the gross margin. I’m hoping, you could maybe elaborate on the impact from an EBIT margin uk moncler outlet standpoint. I mean in the quarter, essentially D2C was all your growth and I want to say, if I do my math right, probably digital was third or more of that. Is there any way you can kind of speak to the margin profile of D2C and digital from an EBIT standpoint, that way we can have some sense as to how that moncler outlet online kind best moncler jackets of impacts your overall operating margin on a go forward basis as I assume that you would expect that to continue to be a big driver of the top line?Yes. Particularly on the digital side and so we haven’t disclosed our relative profitability, I’d say there is never a lot of our profit growth in 2017 has come from our D2C as you can imagine and I’m talking about operating profit. With moncler online store that gross margin expansion comes SG as obvious as it relates to brick and mortar but remember we moderated our brick and mortar a bit, we’re focusing on more on conversion in comp and we will continue to open stores just not quite at the rate as we have in the past, and we’ve got specific focus on digital moncler outlet store which is our single most profitable format that we operate. moncler jackets mens

moncler outlets uk The digital channel is the most profitable format, so the overall effect of the digital expansion on margins should be positive. If digital expansion is actually a tailwind, then the probability of a margin expansion in the long term is good, although moncler sale outlet we can’t quantify the potential moncler sale online increase. Corporation has a well diversified business in terms of brands, geographies, and segments. In the recent past, the business has surely suffered from the weak retail environment in North America, the excess capacity and the highly promotional environment that emerged from that situation. Although the negativity is softening, the environment is not favorable for sure. We have to remember that despite the high diversification, the recent success has been uk moncler sale mainly a cheap moncler sale result of strength in the Vans division, while all the other divisions grew much less or experienced a contraction. moncler outlets uk

moncler jackets for women I have no doubt that the company’s diversification gives stability to the business, but the brand specific strength at Vans and the importance it had for the company’s results can create the illusion that the whole company is on a solid growth path. At more than 23x full year EPS, the stock is not a bargain for sure unless we expect a further acceleration from the current levels. Mid single digit EPS growth is really the minimum I would expect from a fashion company whose stock trades at these multiples and maybe not enough. moncler jackets for women

moncler jackets toronto The problem is that Vans is currently responsible for almost all the growth and it’s surely the sole division responsible for the rally that occurred in the past few quarters, creating a situation of high risk if fashion trends and/or the brand’s appeal start to move in an unfavorable way. moncler jackets toronto

Discount Moncler Coats If it happens, the current performance at divisions such as Timberland, The North Face, Wrangler and Lee is far from being enough to support the current multiples. Moreover, we have to consider that the overall environment is not so favorable, at least in the more developed economies. For example, the wholesale business in North America is still weak and is expected to decline further per management’s own admission. Discount Moncler Coats

moncler jackets This doesn’t mean that VFC is a bad stock to own if we have a long term mindset. I do like many of the company’s and stock’s characteristics, for example: moncler jackets

cheap moncler jackets outlet Free cash flows are huge and constantly above net income, suggesting a good quality of earnings. The company has demonstrated its commitment to return cash to shareholders, with 45 years of consecutive dividend raises (current yield: 2.45%) and constant buybacks, moncler outlet woodbury especially in the past 5 years. A decent balance sheet, especially on the front of liquidity, with a current ratio above 1.4 and good cash reserves (more than $1.5 billion). The main thing I don’t like is the company’s over dependence on cheap moncler jackets Vans for growth and I think that’s enough to skew the risk profile of this stock in an unfavorable moncler outlet way for potential buyers. cheap moncler jackets outlet

moncler jackets men At 23x this year’s EPS and more than 20x 2018’s EPS expectations mainly dependent on the performance of one division, I don’t see any particular mispricing or attractive opportunities. The stock is still a good one to hold in a diversified long term portfolio but I wouldn’t initiate a position at these levels. In the current market conditions, there are much more attractive moncler outlet sale and mispriced stocks in the industry. I rate VFC as a HOLD at the moment moncler jackets men.