VF posts record revenue growth
Apparel manufacturer, VF Corp. reported that its fourth quarter 2012 revenues rose 4% (5% in constant dollars) to a record $3 billion from $2.9 billion in the same period of 2011 driven by strength in the outdoor and action sports and sportswear coalitions, and its international and direct-to-consumer businesses. The sale of John Varvatos in April 2012 negatively impacted VF’s revenue growth by 1 percentage point in the fourth quarter.
Net income on an adjusted basis grew by 32% to $344 million, compared with $262 million in the fourth quarter of 2011. Adjusted earnings per share – which excludes Timberland acquisition-related items of 9 cents per share in 2012 and 4 cents per share in 2011 – also increased 32%, to $3.07 from $2.32 during last year’s same period.
“2012 was another year of record revenues and profits for VF, with solid results across nearly every coalition, channel and geography,” said Eric Wiseman, VF chairman and CEO. “Our performance is confirmation of our greatest competitive advantage – the diversity of our portfolio. It’s this strength, along with our focus on driving operational excellence into all areas of our business, that enables our brands to deliver the industry’s most innovative and meaningful products while deepening relationships with our customers and consumers, and consistently returning value to our shareholders.”
“The year ahead presents tremendous opportunities for us to expand our presence globally, lead our industry in product innovation and identify new platforms to support long-term growth,” said Wiseman. “We are confident that we are the best positioned company in our industry, and look forward to delivering another year of record results to our shareholders.”
For the fiscal year 2013, the company expects sales to increase by about 6% to $11.5 billion including growth in every coalition. Adjusted earnings per share are expected to grow to $10.70, representing an 11% increase.