Feb 15 VF Corp reported a
higher-than-expected fourth-quarter profit, saying demand for
its flagship clothing brands like The North Face and The Vans
increased in global markets, but it gave a 2013 outlook below
The Greensboro, North Carolina-based company said it expects
revenue to increase about 6 percent $11.5 billion. Analysts on
average were expecting $11.86 billion, according to Thomson
VF forecast 2013 earnings of $10.70 a share before special
items. While that would be up 11 percent from last year, the
outlook is below analysts' estimates of $10.95.
On a conference call with analysts, Chief Executive Officer
Eric Wiseman said margins are likely to expand by 100 basis
points, even as revenue rises.
A warm winter pulled down The North Face's performance last
year, Wiseman said, and a weak economy in Europe, which accounts
for about 22 percent of VF's overall business, also hurt
"Beyond 2013, our confidence in the power of VF's portfolio
to deliver 10 percent revenue growth remains high," Wiseman
VF, which also owns the Wrangler, Timberland and 7 For All
Mankind brands, said Asia would remain its strongest region,
with sales growing at a low-teen percentage rate there in 2013.
Shares of the company were up 2.4 percent at $156.46 in
In the fourth quarter ended Dec. 29, the company earned $334
million, or $2.98 a share, compared with $258 million, or $2.28
a share, a year earlier.
Excluding expenses from the company's September 2011
Timberland acquisition and a gain on the sale of John Varvatos
Enterprises Inc, the profit came in at $3.07 a share. Analysts
on average were expecting $3.03, according to Thomson Reuters
Revenue rose 4 percent to $3.0 billion.
Analysts say VF's diverse portfolio of brands helps the
company do well in global markets. International revenue
increased 7 percent in the fourth quarter, led by an 11 percent
increase in Asia.