US: VF boosts income 18% during Q2
VF Corporation has reported that income from continuing operations in the second quarter of the year increased 18% to US$105.8m, compared with $89.6m in the prior year's period, with its outdoor unit growing particularly well.
However, VF added that reflecting the impact of its discontinued intimate apparel business in the quarter, net income was $81.7m, compared with $99.0m in the prior year quarter.
Second quarter revenues rose 12% to $1.5bn, compared with $1.35bn in the second quarter of 2006, driven by higher revenues across all its businesses.
For the first half of 2007, revenues rose 14% to a record $3.19bn, while income from continuing operations increased 15% to $239.9m.
In VF's outdoor sector, revenues grew 20% to $446.8m, driven by double-digit growth in The North Face and Reef brands and continued strong growth for Vans. JanSport brand revenues, meanwhile, declined in the quarter - primarily to a shift in the timing of product shipments into the third quarter.
In its outlook, VF said it expects a fifth consecutive year of record results, with healthy organic growth and third quarter revenues expected to rise approximately 12%.
"The success of our brand portfolio management strategy is evidenced by another record quarter. Our core businesses, which remain strong and healthy, and the brands we have acquired over the last several years continue to drive tremendous shareholder value. Most importantly, we continue to see substantial opportunities for growth, particularly across our lifestyle brands," said Mackey McDonald, chairman and chief executive officer. "Our two most recent acquisitions, the Eagle Creek and Majestic businesses, are performing very well, and we remain confident in our ability to successfully identify, acquire and integrate additional brands with strong growth potential."
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