VF Corp.'s (VFC) first-quarter earnings rose 23%, beating
analysts' estimates, as all segments posted increased sales, led by
the outdoor and action sports products division.
The company also raised its full-year earnings estimate to $7.25
a share on 10% revenue growth. Its February forecast was $7 to
$7.10 a share on revenue growth of 8% to 9%.
The company--which makes clothes under brands such as Lee, The
North Face and Jansport--fared well during the recession and has
continued to report improved results. With rising cotton costs,
however, manufacturers could face a test of their ability to raise
prices to pass on the added expense.
VF reported a profit of $200.7 million, or $1.82 a share, up
from $163.5 million, or 1.46, a year earlier. The most-recent
quarter included a tax-settlement gain of 7 cents.
Revenue jumped 12% to $1.96 billion. Analysts polled by Thomson
Reuters had most recently forecast earnings of $1.61 a share on
revenue of $1.91 billion.
Gross margin rose to 47.2% from 46.7%.
Sales at the outdoor and action sports products segment, the
largest top-line contributor, rose 16% while jeanswear sales rose
9%.
Imagewear revenues rose 12%, reflecting strong gains in its
uniform and licensed sports businesses.
Sportswear sales increased 10% and contemporary brands revenue
was up 8%.
Shares were up 1.2% at $110 premarket. The stock has risen 25%
over the past year.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283;
melodie.warner@dowjones.com