* Quarterly earnings beat Wall Street view by 3 cents a
* Full-year profit outlook raised by 10 cents a share
* North Face sales up 8 percent in constant dollars
* Raises quarterly dividend 21 percent to $0.87/share
* Shares fall 4.1 percent
By Nivedita Bhattacharjee
Oct 22 VF Corp missed Wall Street's
third-quarter revenue expectations, and growth in its flagship
The North Face brand slowed, sending the clothing company's
shares down more than 4 percent on Monday.
The news overshadowed a higher-than-expected profit and a
dividend increase at VF, whose other brands include Wrangler
Revenue came in at $3.15 billion, while analysts on average
were expecting $3.17 billion.
Sales at North Face, VF's leading cold-weather brand, rose 5
percent, or 8 percent in constant dollars. The brand had grown
22 percent in the year-earlier quarter.
"Most people would have expected to see a better growth in
the North Face business," said Susquehanna Financial Group
analyst Christopher Svezia.
North Face suffered because wary retailers ordered close to
what they needed, Steve Rendle, group president for Outdoor &
Action Sports Americas, said on a conference call with analysts.
Rendle also said some North Face orders had moved into the
fourth quarter from the third.
Last year, many retailers were stuck with a lot of
cold-weather merchandise that did not sell, given an unusually
warm winter. That led them to discount coats and other
cold-weather clothes, hurting margins.
Greensboro, North Carolina-based VF, whose global supply
chain is considered among the best in the industry, said
international revenue had risen 28 percent in the third quarter
on a constant-dollar basis.
The company said revenue from its own brands, excluding
acquisitions, had increased 25 percent in Asia. It recently said
it aimed to add $1.1 billion in revenue to its Asia-Pacific
business over the next five years.
For the third quarter, VF earned $381.3 million, or $3.42 a
share, compared with $300.7 million, or $2.69 a share, a year
The results include expenses from the September 2011
Timberland acquisition and a gain on the sale of John Varvatos
Excluding those items, the profit came in at $3.52 a share,
while analysts on average were expecting $3.49, according to
Thomson Reuters I/B/E/S.
"At the end of the day it is a slight miss to revenue, a
slight beat to EPS," Susquehanna analyst Svezia said. "When
everything is said and done, the numbers aren't changing that
much at all."
The company raised its full-year profit outlook to $9.60 per
share from the $9.50 that it had forecast in July. The analysts'
average estimate is $9.54 a share.
VF's board announced a quarterly dividend of 87 cents per
share - an increase of 21 percent over last quarter's payout. It
is payable Dec. 20 to shareholders of record on Dec. 10.
Shares of VF were down 4.1 percent at $159.93 in morning