By Anna Prior
VF Corp.'s (VFC) first-quarter earnings rose 26% as the
premium-brand apparel maker's margins improved amid higher revenue,
particularly from the company's outdoor and action-sports
segment.
Based on slightly stronger-than-expected first-quarter profit,
the company raised its full-year adjusted earnings guidance by five
cents and now expects per-share earnings of $10.75, while
reiterating its forecast for a 6% rise in revenue to $11.5
billion.
VF, whose clothing brands include North Face, 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 $270.4 million, or $2.41 a share, up
from $215.2 million, or $1.91 a share, a year earlier. Excluding
items such as acquisition costs, adjusted earnings rose to $2.43 a
share from $1.94. Revenue rose 2.2% to $2.61 billion.
Analysts polled by Thomson Reuters recently forecast earnings of
$2.19 a share on revenue of $2.64 billion.
Gross margin widened to 48.1% from 45.7%, reflecting lower
product costs and the continued move towards higher margin
businesses.
Sales at the outdoor and action-sports segment, the largest
top-line contributor, rose 9.5% to $1.38 billion. Jeanswear sales
fell 3.2% to $717.9 million.
Imagewear revenue fell 8.9%, sportswear sales climbed 4.3%, and
contemporary brands revenue fell 18%.
Shares rose 1.8% to $182 in light premarket trading. Through
Thursday's close, the stock is up 16% in the past 12 months.
Write to Anna Prior at anna.prior@dowjones.com
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