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."
A month after unveiling its new five-year growth plan, VF Corporation chairman and CEO Eric Wiseman said the company was "right on track" when unveiling a healthy set of second quarter results....
TowerBrook Capital Partners has completed its $824m acquisition of denim and sportswear brand True Religion Apparel....
VF Corp saw second quarter adjusted net income rise on the back of growing margins and rising sales. ...
A group of leading North American retailers and brands - led by Wal-Mart and Gap - have committed more than $142m in funding and low interest loans to help improve factory safety conditions for garmen...
Performance fabrics manufacturer Polartec has appointed Doug Kelliher as vice president of product management....
VF Corp aims to reach US$17bn in revenue by 2017, representing a five-year compounded annual growth rate (CAGR) of 10%. ...
VF Corp has said Scott Baxter will assume responsibility for the company's Latin American division as part of the group's efforts to accelerate growth in the region. ...
- The Flanarant: TPP – now the real fight starts
- Private label sourcing faces range of pressures
- Can Gap maintain its momentum minus Larsson?
- What clothing could the TPP X-basket contain?
- Where next for e-textiles and smart garments?
- Update: Negotiators agree landmark TPP trade deal
- H&M falling behind on Bangladesh factory safety?
- Nike debuts new fabric for adaptive breathability
- New CEO may focus on Ralph Lauren supply chain
- New Bangladesh labour rules draw union criticism
- Wearable technology: The future market potential for smart garments and e-textiles
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, and Contact Details
- Myanmar's Garment Sector in 2015 - now with updated members' directory
- Outdoor performance apparel: peaks, valleys, and green fields
- Ethiopia – the emerging textile and clothing industry