("VF Corp 2Q Profit Rose 16%, Raises Year Forecast Again,"
published at 7:23 a.m. EDT, misstated the percentage change in
profit in the headline and first paragraph, misstated the change in
sportswear revenue and omitted one-time times. A corrected version
follows:)
VF Corp.'s (VFC) second-quarter earnings rose 17% as the
branded-apparel maker saw double-digit sales growth in all
segments, though margins were pressured by higher costs.
The company also raised its full-year estimates for the second
time, to $7.50 a share on revenue growth of 12% to 13%. Its April
forecast was $7.25 a share on 10% revenue growth.
The company, which makes clothes under brands such as Lee, The
North Face and Jansport, has continued to report improved results
in recent quarters, despite rising cotton prices. But VF warned
that its second half would be challenging as cost increases become
steeper and uncertainty surrounding consumer response to additional
price increases later this year.
VF reported a profit of $129.4 million, or $1.17 a share, up
from $110.8 million, or $1 a share, a year earlier. The latest
period included a net 5-cent gain tied to a facility closure. Sales
jumped 15% to $1.84 billion.
Analysts polled by Thomson Reuters had most recently forecast
earnings of $1.02 a share on sales of $1.74 billion.
Gross margin fell to 45.9% from 47.1%, reflecting an 18%
increase in the costs of goods sold.
Sales at the outdoor and action sports products segment, the
largest top-line contributor, rose 23% while jeanswear sales
increased 10%.
Imagewear revenue was up 16%, while Sportswear and
contemporary-brands revenue grew 10% and 11%, respectively.
Shares closed at $114.44 Wednesday and were inactive premarket.
The stock has risen 55% over the past year.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283;
melodie.warner@dowjones.com