EmailStory Stocks®
Archive
Last Update: 22-Oct-12 08:53 ET
VF Corp shares fall 4% following in line revenues
V.F. Corp (VFC $160.00 -6.77) reported third quarter earnings of $3.52 per share, excluding non-recurring items, $0.02 better than the Capital IQ consensus of $3.50, while revenues rose 14.5% year/year to $3.15 billion versus the $3.16 billion consensus. Third quarter revenues from Timberland were $499 million compared with $164 million in the same period of last year; the acquisition was completed on September 13, 2011. Organic revenue growth in the quarter was 2% (6% in constant dollars) driven by continued strength in the Outdoor & Action Sports, international and direct-to-consumer businesses. The Outdoor & Action Sports, Jeanswear, Sportswear and Imagewear coalitions all achieved growth on a constant dollar basis. The sale of John Varvatos impacted VF's organic revenue growth by 1%age point in the third quarter. The company issued guidance for fiscal year 2012 with raised EPS to $9.60 from $9.50 vs. $9.55 Capital IQ consensus. reaffirmed FY12 revenues of $10.9 billion versus $10.96 billion consensus, an increase of ~15%, or 17% in constant dollars, with Timberland accounting for just under $1 billion of the growth. Excluding Timberland, revenues are expected to rise by ~6%, or 8% in constant dollars. Each of the above comparisons includes about a one%age point negative impact from the sale of John Varvatos.
In Q4, which marks the first fully comparable period with Timberland under VF's ownership, constant dollar revenue growth is expected to increase by about 7% over the same period last year. This also includes a one-percentage point negative impact from the sale of John Varvatos. Given expectations for stronger revenue growth comparisons across all coalitions, a greater contribution to earnings from its highly profitable and growing direct-to-consumer business, and more normalized product costs, adjusted earnings per share for the fourth quarter should post the strongest comparison of the year, increasing by just over 30%. VF's Board of Directors declared a quarterly dividend of $0.87 per share, reflecting a $0.15 or 21 percent increase over the previous quarter's dividend (yield now 2.1%).
In Q4, which marks the first fully comparable period with Timberland under VF's ownership, constant dollar revenue growth is expected to increase by about 7% over the same period last year. This also includes a one-percentage point negative impact from the sale of John Varvatos. Given expectations for stronger revenue growth comparisons across all coalitions, a greater contribution to earnings from its highly profitable and growing direct-to-consumer business, and more normalized product costs, adjusted earnings per share for the fourth quarter should post the strongest comparison of the year, increasing by just over 30%. VF's Board of Directors declared a quarterly dividend of $0.87 per share, reflecting a $0.15 or 21 percent increase over the previous quarter's dividend (yield now 2.1%).
