VF Corp (VFC 59.47, +0.82) is higher by 1.4% in pre-market after reporting in-line results for the second quarter.
The apparel conglomerate reported in-line second quarter earnings of $0.29 per share on a 1.7% year-over-year increase in revenue to $2.36 billion, which was just ahead of expectations.
In addition to reporting earnings, VF Corp announced that Eric Wiseman will retire as Executive Chairman and Director, effective October 28. Chief Executive Officer and Director Stephen E. Rendle will assume the role of Chairman following Mr. Wiseman's retirement.
VF Corp's revenue growth was driven by broad-based strength across the company's international and direct-to-consumer platforms, its
Outdoor & Action sports coalition, and its workwear business. Outdoor & Action sports revenue grew 4.0% with Vans brand revenue growing 8.0% and The North Face revenue increasing 5.0%. The growth at Vans was fueled by a 26.0% year-over-year revenue spike in revenue from Asia-Pacific.
International revenue grew 4.0% with China revenue jumping 13.0%.
Direct-to-consumer revenue spiked 13.0% with digital revenue surging 34.0%. Through the first six months of 2017, VF Corp's Direct-to-Consumer revenue increased 10.0%.
Gross margin improved by 80 basis points year-over-year to 49.7% thanks to benefits from pricing, lower product costs, and a mix shift toward higher margin businesses, which were partially offset by currency headwinds.
Looking ahead, the company expects that earnings for the full year will hit $2.94 per share, which is on the high end of previous guidance. This outlook includes expectations for a benefit of $0.08 from additional investments. Revenue for the full year is expected to be up roughly 2.0% at $11.65 billion.