US: VF fourth quarter net income rises 32%
- Adjusted net income rose 32% to $344m
- Revenue increased 4% to $3bn
- Gross margin improved to 47.5% from 45.2%
VF Corp has seen its fourth quarter net income shoot up by 32%, driven by sales growth in its outdoor and sportswear divisions combined with improving gross margins.
The company said today (15 February) that adjusted net income grew over the quarter ended 29 December to reach US$344m, up from $262m in the same period of the prior year.
Revenue grew 4% to $3bn from $2.9bn in the fourth quarter last year. The company said sales growth was driven by strength in its outdoor & action sports, and sportswear coalitions and in its international and direct-to-consumer businesses.
Gross margin improved to 47.5% from 45.2% in the prior year period, which it attributed to the continued shift in its revenue mix towards higher margin businesses and lower year-on-year product costs.
Over the full year, adjusted net income rose 18% to $1.1bn as revenue grew 15% to $10.9bn. International sales were up 29%, accounting for 17% of sales, while direct-to-consumer revenue grew 25%, with Timberland accounting for 15 percentage points of the growth.
"2012 was another year of record revenues and profits for VF, with solid results across nearly every coalition, channel and geography," said Eric Wiseman, VF chairman and CEO.
"Our performance is confirmation of our greatest competitive advantage - the diversity of our portfolio.
"It's this strength, along with our focus on driving operational excellence into all areas of our business, that enables our brands to deliver the industry's most innovative and meaningful products while deepening relationships with our customers and consumers, and consistently returning value to our shareholders."
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