VF Corp. Q4 Profit, Sales Up Yet Misses Estimates



Greensboro, NC—VF Corp. reported today a 7% increase in fourth-quarter earnings and 8% in sales, but results missed analysts’ expectations.

For the three months ended Dec. 31, the apparel, footwear and accessories company reported a profit of $367.7 million, or 82 cents a share, up from $334.2 million, or 75 cents a share, a year earlier. Excluding Timberland acquisition-related costs, adjusted earnings rose to 82 cents from 77 cents, just missing analysts’ average estimate for 84 cents a share.

Kipling Up 33%

Revenue rose 8% to $3.3 billion, driven by double-digit growth in the group’s Outdoor & Action Sports, Sportswear, international and direct-to-consumer businesses, and high single-digit percentage growth in its Imagewear coalition. The sales were almost in line with analysts’ estimate for $3.34 billion

In VF’s Outdoor & Action Sports division, sales increased 12% to $1.9 billion with balanced growth across the U.S. and international markets as well as in wholesale and direct-to-consumer channels.

At Timberland, sales were up 13%; Vans posted 14% growth and The North Face sales rose 12%.

The Sportswear division reported 14% increase to $208 million in sales. Its Nautica brand grew 11% “with solid increases in both its wholesale and direct-to-consumer businesses.”

Kipling posted a 33% increase in sales in the United States, 28% increase internationally.

The Contemporary Brands division was up 1% to $108 million.

Gross margin improved 80 basis points in the period to 48.2%, compared with 47.4% in the same period of 2012. The increase reflected the continuing shift of its revenue mix toward higher margin businesses as well as lower year-over-year product costs, the company said.

“Among many noteworthy brand performances, two significant milestones included The North Face brand passing $2 billion in global revenues and the Vans brand surpassing the $1.7 billion revenue mark, becoming VF’s second largest brand,” said Eric Wiseman, chairman/ceo. “And with strong results from our direct-to-consumer and international businesses, supported by outstanding execution from our global supply chain, we’ve established excellent momentum that we expect to contribute to a strong year for VF in 2014.”

For the full year, VF Corp said it expects revenue to increase by 7% to 8%, and earnings to increase 11% to 13% to $3.05



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Jeff Prine

Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com