VFC VF Corporation

   By Chelsey Dulaney 
 

VF Corp. on Friday reported softer-than-expected sales and edged down its revenue outlook for the year, as the apparel conglomerate continues to struggle with weakness in its sportswear and contemporary brands businesses.

The owner of apparel brands such as Wrangler and Jansport says it is now expecting revenue, backing out currency fluctations, to grow 7.5%, down from its July guidance for 8% growth.

VF said it is seeing weaker-than-expected results in its business that supplies workwear due to slower oil exploration and softness in its direct-to-consumer channels.

VF also boosted its quarterly dividend by 16% to 37 cents a share.

For the period ended Oct. 3, the company booked a profit of $459.9 million, or $1.07 a share, down from $470.5 million, or $1.08 a share, a year earlier.

Revenue rose 2.6% to $3.61 billion. Adjusted for currency fluctuations, sales were up 8%.

Analysts had projected earnings of $1.12 a share on $3.68 billion in revenue, according to Thomson Reuters.

VF's outdoor segment, which includes brands like North Face and Nautica, has driven results for VF lately as it struggles in other parts of its business.

In the most recent period, outdoor sales grew 5%, or 13% excluding currency impacts.

Jeanswear sales were flat, or up 4% excluding currency swings, while contemporary brands sales fell 13% excluding currency impacts. Earlier this year, VF said it wrote down the value of the once-hot denim brand Seven For All Mankind along with two other contemporary lines by $396 million.

Sportswear sales fell 1% on a currency-neutral basis.

Write to Chelsey Dulaney at chelsey.dulaney@wsj.com

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(END) Dow Jones Newswires

October 23, 2015 08:06 ET (12:06 GMT)

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