VFC VF Corporation

By Joshua Jamerson 

Apparel conglomerate VF Corp. reported softer-than-expected sales and profit in the fourth quarter and offered an in-line revenue outlook for the current year, forecasting continued weakness in its sportswear and contemporary brands businesses.

Shares of VF--which owns brands like Wrangler, Timberland and North Face--fell 6.5% to $57.25 in light premarket trading, down from Thursday's close of $61.25.

Chairman and Chief Executive Eric Wiseman said the results reflected soft consumer demand, warmer weather and a stronger U.S. dollar--but said the headwinds should be "a relatively short-term challenge."

VF said sales in its imagewear segment declined because of 20% lower revenue in its workwear business amid "considerably lower oil and gas exploration." The company also blamed its results in the quarter on a calendar shift, with an extra week of sales in the prior year.

The company said it expected revenue, excluding currency fluctuations, to grow at a "mid single-digit percentage rate" in 2016. Analysts, on average, were projecting 6% growth, according to Thomson Reuters.

VF said it is anticipating revenue growth in its outdoor and action sports, jeanswear and imagewear segments. But it forecasted a slight decline in sportswear--which includes Nautica--and a mid single-digit decline in the contemporary brands unit, which includes the company's premium apparel products.

For the latest period, the company posted a profit of $312.2 million, or 72 cents a share, up from $122.1 million, or 28 cents a share, a year earlier. Excluding items, per-share earnings slipped to 95 cents from 98 cents. Analysts had projected earnings of $1.01 a share.

Revenue slid 5% to $3.38 billion; analysts, on average, had anticipated $3.64 billion. Adjusted for currency fluctuations and excluding the extra week of sales in the prior-year quarter, sales rose 3%, the company said.

Sales in its contemporary brands segment fell 19% from a year before. Excluding the impacts of the extra week in the prior year and currency impacts, sales dropped 10% in the segment. Sportswear and imagewear also saw declines, while its jeanswear and outdoor and action sports units saw sales gains excluding items.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

(END) Dow Jones Newswires

February 19, 2016 08:17 ET (13:17 GMT)

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