Jul 21, 2009
VF result beats estimates; keeps 2009 forecast
Jul 21, 2009
SAN FRANCISCO, July 21 (Reuters) - VF Corp (VFC.N) reported a lower quarterly profit on Tuesday 21 July that nevertheless beat Wall Street estimates, helped by cost controls and inventory management. The company also stood by its 2009 forecast and its shares rose.
Vans, a VF Corp brand
VF, home to dozens of clothing brands including Wrangler, Lee, Vans and The North Face, said net income in its second quarter was $75.5 million, or 68 cents per share, compared with $104.0 million, or 94 cents per share, a year earlier.
Analysts, on average, were expecting 58 cents per share, according to Reuters Estimates.
Revenue fell 11 percent in the quarter to $1.49 billion.
"Business remains undeniably tough across most categories, channels and geographies," said Chief Executive Eric Wiseman in a statement. He nevertheless cited market share gains in the company's largest brands -- Wrangler, Lee, The North Face and Vans.
The company affirmed its full-year earnings outlook. In April it forecast a 2009 profit of $4.70 to $5.00 per share, which was significantly below its earlier view of $5.42 per share.
VF said on Tuesday 21 July that revenue and earnings in the second half of the year would improve relative to those in the first half, but warned that currency effects would remain a "significant impact" on the third quarter.
VF shares rose 2.3 percent to $62 in after-hours trade after closing at $60.59, down 1 percent, on the New York Stock Exchange. (Reporting by Alexandria Sage; Editing by Tim Dobbyn)
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