VF Corp. 3Q profit rises on North Face, Vans sales

October 21, 2010

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GREENSBORO, N.C.—Strong sales of North Face and Vans products helped push V.F. Corp.'s net income higher in the third quarter, beating analysts' estimates, and the clothing company increased its quarterly dividend by 3 cents per share.

V.F. Corp. also boosted its 2010 earnings and revenue outlooks again.

Earnings rose 11 percent to $242.8 million, or $2.22 per share, compared with $217.9 million, or $1.94 per share, a year earlier.

This beat the expectations of analysts polled by Thomson Reuters, who forecast net income of $2.11 per share.

Revenue improved to $2.23 billion from $2.09 billion as its North Face and Vans businesses each posted double-digit revenue gains. Wall Street forecast $2.21 billion in revenue.

The company's Outdoor and Action Sports segment, which include the North Face and Vans brands, reported a 14 percent rise in global revenue. The global jeanswear unit saw revenue edge up 1 percent, while the sportswear division's revenue dropped 13 percent because some Nautica shipments were pushed from the third quarter to the fourth quarter.

V.F. Corp. said Thursday that it now expects full-year net income in a range of $6.25 to $6.30 per share. Its prior guidance, which had been raised in July, was for earnings of $6.10 per share.

The company based in Greensboro, N.C. also lifted its revenue forecast. V.F. Corp. now anticipates revenue will climb more than 5 percent to about $7.6 billion, up from a previous forecast for revenue growth of 4 percent to 5 percent.

Analysts predict 2010 earnings of $6.17 per share on revenue of $7.56 billion.

In addition, V.F. Corp. raised its quarterly dividend by 3 cents to 63 cents. The dividend will be paid on Dec. 20 to shareholders of record Dec. 10.