21 Oct VF Corp hits new highs on overseas sales
VF Corp. (VFC) missed third-quarter revenue forecasts, but strong Vans and overseas sales helped the apparel maker top earnings estimates.
The Greensboro, N.C.-based company also announced a 4-for-1 stock split and hiked its quarterly dividend by 21% to $1.05 a share.
Shares gapped up to a new high after VF reported profit of $3.91 a share ex items, up 11% from last year and 13 cents over views. Revenue climbed 5% to $3.27 billion, slightly below forecasts for $3.34 billion.
That’s the sixth straight quarter VF has missed sales views, but its earnings have consistently topped Wall Street’s consensus estimates.
Its outdoors and action sports business, which accounts for more than half its revenue and includes North Face, Timberland and Vans, saw sales rise 6%.
Vans led with a 16% jump in global sales, while North Face and Timberland edged up 3% and 2%, respectively.
Piper Jaffray’s latest “Taking Stock With Teens” survey found Vans was one of the top footwear brands preferred by that influential age group.
VF’s jeans-wear unit, which makes up roughly a quarter of total sales, increased 4% as Wrangler lifted 8% and Lee 3%. Its contemporary brands and sportswear segments climbed 1% each, and image-wear was flat.
International revenue rose 7%, helped by 13% growth in the Americas (ex U.S.), 7% in Europe, and 2% in Asia-Pacific. Like last year, international sales made up 40% of total revenue.
VF reaffirmed its full-year guidance for EPS of $10.85 on $11.5 billion in revenue. Analysts expect EPS of $10.95 on revenue of $11.52 billion.
Shares were up 4% at 212.32 in early-afternoon trading on the stock market today. Among others in IBD’s Apparel-Clothing Manufacturing group, Michael Kors (KORS) and Iconix Brand Group (ICON) edged higher, while Hanesbrands (HBI) and Under Armour (UA) were down slightly.