• Q4 adjusted net profit up 34% to US$262m
  • Revenues up 37% to $2.91bn
  • CEO highlights international and DTC gains

Apparel giant VF Corporation recorded a 34% increase in fourth quarter profit, boosted by gains from new acquisition Timberland, plus growth in direct-to-consumer (DTC) and international sales.

The company said Timberland added revenues worth US$549m in the three months to 31 December, but added that sales had risen 11% without the contribution of the brand acquired in September last year.

However, gross margin shrank to 45.2% from 46.6% in the same period last year, impacted by higher product costs.

All divisions recorded revenue increases: outdoor and action sports was up 81% (19% without Timberland); jeanswear rose 3%, imagewear increased 10%, sportswear edged up 1% and contemporary brands grew by 12%.

International revenues were up 68%, while DTC revenues surged up 53%, VF said.

“In 2011 we achieved record revenues, record earnings and record cash flow, and we completed the transformational acquisition of Timberland,” said company chairman and CEO Eric Wiseman.

“The successful execution of our key international and direct-to-consumer growth drivers has delivered healthy organic growth, strong profitability and consistent return for our shareholders this year, and we look forward to building on this momentum in 2012 and beyond.”

For 2012, VF is predicting a 15% gain in revenues and adjusted earnings per diluted share of about $9.30.