VF Corp reaches record Q1 earnings, raises full-year outlook
Branded apparel retailer VF Corp (NYSE:VFC) said Friday that first quarter profit rose to record levels as the company recorded higher revenues due to strong growth internationally, and in its outdoor sports segment, prompting a spike in its full-year guidance.
For the first three months of 2011, the North Carolina-based company posted net income of $200.7 million, or $1.82 per share, up from $163.5 million, or $1.46 per share, in the year ago period. Analysts forecast earnings of $1.61 per share, according to Thomson Reuters.
Further beating analyst expectations, revenue rose 12% to $1.96 billion, as all VF segments achieved higher sales, particularly the core outdoor and action sports unit, which includes the North Face and Vans brands, with 16% growth. The North Face, Vans and Kipling brands improved sales by 17%, 20% and 29%, respectively, as international sales rose 21% in the unit.
Jeanswear revenue grew 9% on strength abroad, while imagewear sales rose 12%.
Sportswear revenue, which includes the Nautica brand, increased 10%, and contemporary brands sales, which comprises 7 For All Mankind, Splendid and others, were up 8% as sales near doubled in Asia.
Overall, international revenues increased 20%, driven by strong growth in Asia and India.
Gross margin reached a record 47.2% during the quarter, up from 46.7% a year earlier.
"Our decision last year to increase investments in our brands to drive organic growth is paying dividends in the form of continued top and bottom line momentum that we expect to sustain during 2011," said chairman and CEO, Eric Wiseman.
Indeed, for 2011, the company said it now expects revenues to rise roughly 10% in 2011, up from the previous guidance of between 8% to 9%. Meanwhile, earnings per share are now anticipated to increase to $7.25, higher than the earlier outlook of between $7.00 to $7.10 per share.
During the quarter, a total of 15 stores were opened across VF's brands, bringing the total number of owned stores to 788.
Related news
- London Mining remains on track to hit 2012 production target at Marampa
- Ceres Power Holdings reports significant improvements of its fuel cell products
- Oxford Catalysts Group shares advance as it announces first start-up of FT reactor
- Mariana Resources kicks off drilling programme at Las Calandrias gold-silver project
- Orogen Gold begins Phase 1 drilling programme at Deli Jovan
- Magnolia Petroleum on track to hit 100 wells target by end-2012
- Mwana Africa sells 15pct stake in Freda Rebecca gold mine for $405k - UPDATE
