VF Corp. today enjoyed a modest bump in share price in early-morning trading after the firm announced second-quarter results that were better than expected. (As of 10:10 a.m. ET, shares dipped into the red, down 0.1 percent to $58.57.)
Reported net income advanced more than 100 percent to 110 million, or 27 cents per share. Adjusted EPS was 29 cents, which bested market watchers’ forecasts for adjusted EPS of 28 cents.
VF noted that sales performance was particularly high across international business and in China (up 4 percent and 13 percent, respectively), direct-to-consumer (13 percent) and at hero brands Vans (8 percent) and The North Face (5 percent).
“VF’s second-quarter results were solid and consistent with our expectations, driven by strong results from our largest global brands, the company’s international and direct-to-consumer platforms, and our growing workwear businesses,” president and CEO Steve Rendle said in a release. “We have really good momentum as we move into the second half of 2017 and are confident in our growth engines.”
To that end, VF announced that it has increased its full-year outlook and now expects EPS of $2.94 — at the higher end of its prior outlook range of $2.89 to $2.94. This includes about 8 cents per share ($40 million pretax) impact from additional planned investments that the company said will spur growth. Revenues are expected to be $11.65 billion, up 2 percent on a reported basis (or 3 percent currency-neutral basis).
“Based on the strength of the first half of 2017 and our expectations for the second half of the year, we are making growth-focused investments in our largest brands and platforms to generate additional value for our shareholders both in the near and long term,” Rendle noted in the release.
In conjunction with its second-quarter release, VF announced the retirement of chairman and former CEO Eric Wiseman, effective October 28, 2017. Rendle will now assume the chairman post in addition to his roles as president and CEO.
Although market watchers have been anxiously awaiting VF’s next acquisition, the firm has maintained its reputation as a disciplined buyer — announcing divestitures only over the last few years. On April 28, the company completed the sale of its Licensed Sports Group business, including the Majestic brand. Prior to that, in August 2016, the firm finalized the sale of its Contemporary Brands businesses, which included the 7 for All Mankind, Splendid and Ella Moss brands.