VF Corp raises outlook after strong Q3

Worldwide
Published:  24 October, 2017

U.S. headquartered branded lifestyle apparel, footwear and accessories manufacturing group VF Corp has posted solid third-quarter results, and raises both outlook and dividends for 2017.

Third-quarter revenue from continuing operations for VF Corp, owner of the Timberland brand, increased 5% to US$3.5 billion (up 4% currency neutral), while gross margin from continuing operations improved 100 basis points (up 180 basis points currency neutral) to 50.1%. Revenue for the Outdoor & Action Sports category is reported to have increased 8% (+6% percent currency neutral), with the Vansbrand revenue increasing 28% (+26% currency neutral) in the period.

International revenue increased 13% in the quarter (+10% currency neutral), including 18% growth in Europe (up 14% currency neutral) and 9% growth in China. Direct-to-consumer revenue was up 18%, with digital revenue increasing 38%.

The Group now expects 2017 revenue to increase about 6% on a reported basis (+5.5% on a currency neutral basis) to approximately US$12.1 billion, while reported earnings per share is now expected to be US$2.73 and adjusted earnings per share from continuing operations US$3.01. International revenue should increase approximately 10% versus the previous expectation of a low single-digit increase.

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