Vans sneakers on beach
VF Corp.’s quarterly revenue and earnings beat Wall Street expectations on Wednesday and the company raised its full-year profit forecast, banking on growing demand for its brands such as Vans and North Face.
The company now expects full-year adjusted profit from continuing operations to be in the range of $3.32 to $3.37 per share, including an $20 million additional investment, compared with its previous forecast of $3.30 to $3.35 per share.
The apparel maker spun-off its less-profitable jeans business, including Lee and Wrangler brands, in May into Kontoor Brands Inc to focus on the high-margin brands such as Vans and North Face.
Revenue from Vans, popular among skateboarders, jumped 20% in the first quarter, while that from North Face rose 9%.
Net revenue rose 6.3% to $2.27 billion, beating analysts’ estimate of $2.24 billion, according to IBES data from Refinitiv.
Net income fell to $49.2 million, or 12 cents per share, in the quarter ended June 29, from $160.4 million, or 40 cents per share, a year earlier, primarily due to the spin-off of its jeans business.
Excluding items, the company earned 30 cents per share, beating analysts’ estimate by a cent.