--Fourth-quarter earnings up 30%
--Current year outlook soft
--Company says it is well positioned
(Adds further context and comments from chief executive on
conference call. Includes analyst comment. Updates stock
price.)
By Melodie Warner and Karen Talley
VF Corp.'s (VFC) fourth-quarter earnings rose 30% as the
premium-brand apparel maker's margins improved despite
slower-than-expected revenue growth.
The company also forecast 2013 adjusted earnings of $10.70 a
share on revenue of $11.5 billion, while analysts surveyed by
Thomson Reuters expect $10.95 a share on $11.86 billion in
revenue.
VF has been emphasizing its higher margin businesses like North
Face, Vans and retail stores and this helped drive profitability in
the fourth quarter. But the softer-than-expected 2013 guidance may
be attributable to a less-than-expected positive impact from its
Timberland acquisition, said Brian Yarbrough, retail analyst with
Edward Jones.
Chief Executive Eric Wiseman expressed confidence. "We will
continue to leverage our portfolio and competitive advantages to
drive revenue growth, margin expansion and earnings while
mitigating risk and most importantly creating long-term value for
our shareholders," Mr. Wiseman said on a conference call."VF is not
6% growth company. It's a 10% growth company.
VF, whose brands also include Wrangler and Nautica, has seen
increased revenue for over three years as its 2011 acquisition of
the footwear company Timberland Co. contributed to strong outdoor
and action-sports segment sales.
VF reported a profit of $334.2 million, or $2.98 a share, up
from $257.3 million, or $2.28 a share, a year earlier. Excluding
items such as acquisition costs, adjusted earnings rose to $3.07
from $2.32. Revenue jumped 4.2% to $3.03 billion.
Analysts polled by Thomson Reuters most recently forecast
earnings of $3.03 a share on revenue of $3.07 billion.
Gross margin rose to 47.4% from 45.2%.
Sales at the outdoor and action-sports segment, the largest
top-line contributor, rose 5.6% to $1.71 billion. Jeanswear sales
increased 3.2% to $734.8 million. Imagewear revenue rose 2.1%,
sportswear sales climbed 15%, and contemporary brands revenue was
down 17%.
Shares are up 0.8% to $154 premarket. The stock has risen 6.7%
over the past year.
Write to Melodie Warner at melodie.warner@dowjones.com and Karen
Talley at karen.talley@dowjones.com
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