VF Corp. (VFC: NYSE)
Shares of Vans and North Face parent VF Corp. jumped 14% early Friday after the company posted stronger-than-expected earnings and revenue for its fiscal third quarter.
Revenue increased by 8%, while adjusted earnings per share rose 30%. The apparel and footwear retailer also raised its forecast for fiscal 2019, causing its shares to change hands at $83.58 after a gain of $10.
VFC Earnings & Outlook
VF said it had net income of $463.5 million, or $1.16 per share in the quarter after a loss of $90.3 million, or 23 cents a share in the year-earlier period. Adjusted for one-time costs and gains, earnings per share came to $1.31 surpassing the FactSet consensus for earnings of $1.10 per share.
Total revenue for the quarter ended December 29, 2018 increased to $3.94 billion from $3.65 billion reported in the same period a year ago. Analysts were expecting revenue of $3.87 billion. Active segment revenue rose 16%, while international revenue climbed 5%. Direct to consumer revenue jumped 10%.
VF raised its outlook for fiscal 2019 and expects adjusted earnings per share of $3.73 from its previous guidance of $3.63. The company expects revenue of at least $13.8 billion from the previous guidance of at least$13.7 billion as increased revenue outlook for outdoor, work and active segments offset lower revenue outlook for the jeans segment.
VF Corp. CEO Comments
VF Corporation Chief Executive Steve Rendle said, “VF’s third quarter results were fueled by strong growth in our largest brands and balanced growth across the core dimensions of our portfolio.”
“Based on the strength of our third quarter performance and the growth trajectory we see for the remainder of fiscal 2019, we are again increasing our full year outlook, including an additional $45 million of growth-focused investments aimed at accelerating growth and value creation into fiscal year 2020. We remain sharply focused on executing our integrated growth strategy and transforming VF into a purpose-led, performance-driven enterprise committed to delivering superior returns to shareholders,” Mr. Rendle added.
VF Corp. Profile
VF Corp. designs, produces, procures, markets and distributes lifestyle apparel, footwear and related products. It operates through the following segments: Outdoor & Action Sports, Jeanswear, Imagewear and Others.
The Outdoor & Action Sports segment refers to outdoor and activity-based lifestyle brands including performance-based apparel, footwear, equipment, backpacks, luggage, handbags and accessories under the North Face, Vans, Timberland, Kipling, Napapijri, JanSport, Reef, Smartwool, Eastpak, and Eagle Creek brands.
The Jeanswear segment offers denim, casual apparel, footwear and accessories under the Wrangler, Lee, Riders by Lee, Rustler, and Rock & Republic brands. The Imagewear segment provides occupational workwear and athletic apparel. The Others segment include Sales of non-VF products at VF Outlet stores. VF Corporation was founded in 1899 by John Barbey and headquartered in Greensboro, North Carolina. – CNN Money