US: VF raises full-year forecast on strong Q2
- Q2 net income increased 19.9% to $ 155.4m
- Revenue rose 16% to $2.1bn
- Lifts FY guidance by $0.05 per share to $9.50
VF Corp today (19 July) raised its full-year guidance after recording a jump in second-quarter net income.
The owner of the North Face, Wrangler, Lee, and Nautica brands, lifted its full-year guidance by $0.05 per share to $9.50 after profit climbed 19.9% to US$155.4m in the three months ended 30 June.
Excluding the impact of the sale of the John Varvatos brand, net income declined to $123m from $129m in the same period of the prior year.
Revenue rose 16% to $2.1bn. On an organic basis, revenue increased 3%, driven by strong growth in its outdoor and action sports, and international businesses.
Gross margin was better than expected, rising 20 basis points to 46.1% as the impact of higher jeanswear costs eased.
Over the first-half, net income increased 3% on an adjusted basis to $341m as revenue rose 24% to $4.7bn.
"We've reached the halfway mark of the year, and are right on track to deliver another year of strong and very profitable growth to our shareholders," said chairman and CEO Eric Wiseman.
"The strength of VF's business model - a diverse portfolio strategy supported by an intense focus on financial and operational disciplines - provides us with a clear competitive advantage as we successfully navigate through an increasingly uncertain economic environment."
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