VF reports 14 percent rise in Q3 revenuesMonday, 22 October 2012
VF Corporation in its results for the third quarter ended September
29, 2012, has announced that its revenues rose 14 percent to 3.1 billion dollars from 2.8 billion dollars in 2011. Third quarter revenues from Timberland were 499 million dollars compared with 164 million dollars in the same period of last year; the acquisition was completed on September 13, 2011. Organic revenue growth in the quarter was 2 percent (6 percent in constant dollars) driven by continued strength in the outdoor & action sports, international and direct-to-consumer businesses. Net income on an adjusted basis was 393 million dollars compared to 321 million dollars in the same period last year.
“Having achieved yet another quarter of record revenue, gross margin and earnings per share performance, we remain on track to deliver a year of outstanding results to our shareholders,” said Eric Wiseman, VF Chairman and Chief Executive Officer.
Wiseman further stated, “We are confident in our ability to deliver a very strong fourth quarter across our businesses, supported by higher levels of strategic investments in key brands and markets that are proven drivers of both top and bottom line growth.”
Its revenues in the first nine months of 2011 increased 20 percent to 7.8 billion dollars from 6.5 billion dollars. The Timberland acquisition accounted for 14 percentage points, or 931 million dollars, of the revenue growth in the period. Organic revenue growth during the first nine months of 2012 was 6 percent; in constant dollars, organic revenue growth in the first nine months was 8 percent. Net income on an adjusted basis increased 13 percent to 734 million dollars in the first nine months of 2012, up from 651 million dollars reported in the same 2011 period.
Based on strong results achieved in the first nine months of 2012, full year adjusted earnings per share are now expected to be approximately 9.60 dollars per share, up 0.10 dollars from the 9.50 dollars per share guidance provided on July 19. The company also indicated plans to increase its fourth quarter global marketing investment over previously expected levels, particularly in The North Face and Vans brands, to capitalize on current momentum, support growth in key strategic regions and connect even more deeply with consumers. VF’s Board of Directors declared a quarterly dividend of 0.87 dollars per share, reflecting 0.15 dollars or 21 percent increase over the previous quarter’s dividend.