By Tess Stynes
VF Corp.'s (VFC) third-quarter earnings rose 27% as the
branded-apparel maker's Timberland Co. acquisition contributed to
strong sales of outdoor and sports segment sales.
For the year, the company raised its per-share earnings estimate
by 10 cents to $9.60 and affirmed its revenue view.
VF said its board also authorized a 21% increase in the
company's quarterly dividend, to 87 cents a share. The increased
payout to shareholders is expected to cost VF an additional $16.7
million a quarter.
VF, which makes clothes with brands including North Face,
Wrangler and Nautica, has seen its recent results helped by last
year's $2.3 billion acquisition of footwear company Timberland.
VF also has been targeting growth abroad, especially in China
and other Asia-Pacific nations, where it is aiming to more than
double its revenue over the next five years, to $2 billion.
"We are confident in our ability to deliver a very strong fourth
quarter across our businesses," Chairman and Chief Executive Eric
Wiseman said.
VF reported a profit of $381 million, or $3.42 a share, up from
$300.7 million, or $2.69 a share, a year earlier. Excluding
acquisition- and restructuring-related charges, pension expenses
and other items, earnings rose to $3.52 a share from $2.87.
Revenue increased 14% to $3.12 billion.
Analysts polled by Thomson Reuters most recently projected
earnings of $3.49 on revenue of $3.17 billion.
Gross margin rose to 46.7% from 45.3% amid a shift toward
higher-margin businesses.
Sales at the outdoor and action-sports segment, the largest
top-line contributor, climbed 29% to $1.85 billion, with organic
revenue growth of 6%. Timberland and Smartwool added $499 million
to revenue.
Shares closed Friday at $166.77 and were inactive premarket. The
stock is down 1.8% from a record high last week.
Write to Tess Stynes at tess.stynes@dowjones.com.
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