After rationalizing its portfolio recently — offloading Nautica and adding Williamson-Dickie, among other changes — VF Corp. is firing on all cylinders.
Bolstered by strength at Vans, which grew 45 percent, and The North Face, which logged an 11 percent gain, VF posted sales of $3 billion for the three-month “transition period” ended March 31. It was a 22 percent gain over the same period last year and better than Wall Street’s bet for sales of $2.9 billion.
There were double-digit advances across divisions, with international sales up 27 percent and direct-to-consumer up 34 percent, including a 5 percent contribution from the firm’s recent acquisition of Williamson-Dickie.
Reported profits climbed 21 percent from the comparable period to $253 million, or 63 cents per diluted share. On an adjusted basis, earnings per diluted share were 67 cents, besting analysts’ forecast for diluted earnings per share of 65 cents.
Looking ahead, the company expects fiscal year 2019 revenue in the range of $13.45 billion to $13.55 billion, reflecting growth of 9 percent to 10 percent. By coalition, revenue for Outdoor & Action Sports is expected to increase 8 percent to 10 percent, revenue for Jeanswear is expected to be about flat compared with prior year, and Imagewear revenue is expected to increase more than 35 percent. Adjusted earnings per share are expected to be in the range of $3.48 to $3.53, reflecting growth between 11 percent and 13 percent.
As of 9:45 a.m. ET, VF shares were down more than 3 percent to $76.