Branded apparel company VF Corporation is set to beat its own earnings forecasts in the second quarter, thanks to stronger earnings from operations and a tax settlement.

The US company is due to report the results of its first quarter on 15 July, but has already indicated that second quarter earnings per share could exceed its earlier guidance of US$0.80 by 10-12%.

VF said "stronger earnings from operations and a net favourable benefit from the resolution of various tax matters" were responsible for the probable increase.