VF Corp Earnings Down 6.8% in Q3; Raises Outlook
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- October 26 2009
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Vans parent company VF Corp announced today that comparable revenue for the third quarter had dropped five percent to $2,093.8 million, compared to $2,206.6 million in the third quarter of 2008. The company did say it expected earnings from $4.85-$5 a share for the fourth quarter, which is the upper half of its previous guidance and that it expects stronger revenues for the fourth quarter, with a sharp increase in earnings. According to the compay’s Investor Relations site:
“Third quarter revenues in our Outdoor and Action Sports coalition were about even with the prior year, with operating income and margins each reaching record levels in the period. On a constant currency basis, revenues rose 3%. Global revenues of The North Face(R) and Vans(R) brands grew 10% and 4%, respectively, in the quarter on a constant currency basis. Total coalition revenues in our Americas businesses rose 1%, while international revenues were up 4% in constant dollars, led by exceptionally strong growth in Asia. Total direct-to-consumer revenues for our Outdoor and Action Sports coalition rose 17% in the quarter, with double-digit growth in our The North Face(R), Vans(R) and Napapijri(R) brands. Operating income rose with margins reaching a record 23.1% in the quarter, with continued expansion in gross margins.
Revenue growth should accelerate in the fourth quarter primarily due to an increase in our owned retail store business, as well as more favorable foreign currency translation rates. In addition, operating margins should continue to expand in the quarter compared with the prior year period.”
For more information, or to read the entire report, visit the VF Corp Investor Relations page.
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