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Revenue growth across divisions pushed VF Corp. to its 12th-consecutive quarter of earnings gains.
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“The retail environment remains as challenging as ever, so our performance this quarter and this year serves as a testament to our efforts,” said Mackey McDonald, chairman and chief executive officer, during a company conference call with analysts.
For the third quarter ended Sept. 30, earnings increased 10.1 percent to $197.7 million, or $1.75 a share, far surpassing Wall Street analysts’ consensus estimate of $1.67 a share. Comparatively, earnings for the same period a year ago were $179.6 million, or $1.57 a share. Revenues rose 11.6 percent to $2.03 billion compared with revenues of $1.82 billion in the year-ago period. Sales rose 11.8 percent to $2.01 billion from $1.8 billion.
The company’s outdoor segment, which includes the The North Face, Vans and Napapijri brands, once again led all divisions in revenue gains, posting a 25.5 percent increase to $659 million from $525.2 million. Domestic revenues for the segment were up 20 percent while international revenues expanded 27 percent.
“The good news is we believe there’s much more to come,” Eric Wiseman, president and chief operating officer, who was also named to the company’s board last week, said during the call.
According to Wiseman, North Face brand bookings for spring are already up more than 20 percent in North America and Europe. “We’re seeing a similar story at Vans,” said Wiseman, noting that spring bookings for the brand are up 47 percent in America and more than 20 percent in Europe. The company’s jeanswear segment, it’s largest and oldest division, saw growth across all retail channels, including a notable rebound in the Lee business. Jeanswear revenues increased 6.3 percent to $738.2 million from $694.7 million.