North Face, Wrangler owner VF raises profit view
(Reuters) - VF Corp (VFC.N) posted a higher-than-expected quarterly profit on lower product costs and strong demand for its outdoors and sports wear, and the company raised its full-year profit forecast.
Shares of the company rose 2.4 percent Thursday in before-the-bell action.
The owner of The North Face, Wrangler, Lee and Timberland brands now expects to earn $9.50 per share for the full year on an adjusted basis, 5 cents more than its previous prediction.
VF has bested Wall Street's quarterly profit estimates for more than two years in a row. For the second quarter ended June 30, the company earned $155.3 million, or $1.40 per share, up from $129.4 million, or $1.17 per share, last year.
On an adjusted basis, the company earned $1.11 per share, beating analysts' expectations of 94 cents a share, according to Thomson Reuters I/B/E/S.
Gross margin rose slightly to 46.1 percent from 45.9 percent as the impact of higher jeans wear product costs eased.
Revenue rose 16 percent to $2.14 billion.
Shares of the company closed at $141.81 on Wednesday on the New York Stock Exchange. They were trading at $145.21 before the bell.
(Nivedita Bhattacharjee in Chicago and Arpita Mukherjee in Bangalore)
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