VF Corp. posted fourth quarter results that met analysts’ consensus EPS expectations, but missed revenue projections.
VF saw net income slip 15.3 percent to $264.3 million, or 63 cents a diluted share, from $312.2 million, or 72 cents, a year ago. On an adjusted basis, earnings per share were 97 cents. Total revenues fell 0.2 percent to $3.32 billion from $3.33 billion. That included a 0.1 slip in net sales that were essentially flat at $3.29 billion. The balance of income was from royalty revenues.
Wall Street was expecting EPS at 97 cents on revenues of $3.44 billion.
Eric Wiseman, executive chairman, said, “We’re pleased with the improved quality of our revenue, which reflects continued growth in our international and direct-to-consumer platforms, and our strong gross margin and cash generation performance that enabled us to return a record $1.6 billion to our shareholders. Looking forward, I expect the strategic and operational actions we are taking to generate even stronger long-term value for our shareholders.”
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The company said gross margin for the quarter improved 90 basis points to 49.1 percent. The quarter’s revenues were driven by strength in its international and direct-to-consumer platforms, as well as its Vans business. The company said its Outdoor & Action Sports coalition was up 2 percent to $2.1 billion, while Jeanswear fell 5 percent to $697 million. At its Imagewear coalition, revenues rose 15 percent to $298 million, while Sportswear decreased 17 percent to $162 million. Overseas, the international business was up 5 percent, which included a 6 percent gain in Europe and a 6 percent rise in the Asia Pacific region. Revenues in the Americas region were down 1 percent. On the direct-to-consumer front, revenues were up 11 percent.
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Steve Rendle, president and chief executive officer, said, “The proliferation of technology and innovation across all aspects of our lives has shifted consumers’ shopping behaviors and elevated their expectations when engaging with our brands. We are pivoting to become more agile and consumer centric to compete and win in this changing global marketplace.”
For full year 2017, the company said it expects EPS to be down at the low single-digit percentage rate versus 2016 adjusted EPS of $3.11, which was up at the mid-single-digit percentage rate on a currency neutral basis.
Revenues were projected to rise at a low single-digit percentage rate, including a two percentage point negative impact from changes in foreign currency.