NEW YORK: VF Corporation has reported a higher-than-expected fourth-quarter revenue, saying demand for its flagship clothing brands like The North Face and The Vans increased in global markets, but it gave a 2013 outlook below analysts’ estimates.
The Greensboro, North Carolina-based company said it expects revenue to increase about 6 per cent $11.5 billion. Analysts on average were expecting $11.86 billion, according to Thomson Reuters.
VF forecast 2013 earnings of $10.70 a share before special items. While that would be up 11 per cent from last year, the outlook is below analysts’ estimates of $10.95.
On a conference call with analysts, Chief Executive Officer Eric Wiseman said margins are likely to expand by 100 basis points, even as revenue rises.
A warm winter pulled down The North Face’s performance last year, Wiseman said, and a weak economy in Europe, which accounts for about 22 per cent of VF’s overall business, also hurt results.
“Beyond 2013, our confidence in the power of VF’s portfolio to deliver 10 per cent revenue growth remains high,” Wiseman said.
VF, which also owns the Wrangler, Timberland and 7 For All Mankind brands, said Asia would remain its strongest region, with sales growing at a low-teen per centage rate there in 2013.
Shares of the company were up 2.4 per cent at $156.46 in Friday trading. In the fourth quarter ended Dec.29, the company earned $334 million, or $2.98 a share, compared with $258 million, or $2.28 a share, a year earlier.
Excluding expenses from the company’s September 2011 Timberland acquisition and a gain on the sale of John Varvatos Enterprises, the profit came in at $3.07 a share.