VF Q2 Earnings Bolstered by Outdoor and Sport Brands
VF Corp.'s expanded outdoor and action sport apparel segment continued to have positive effects as the company's second-quarter earnings rose 14 percent to $157.7 million from $138.3 million the year before. In total, revenues rose 8.2% to $2.40 billion from $2.22 billion, which included an 8.1% net sales growth to $2.37 billion from $2.19 billion.
VF, which holds a portfolio of more than 30 brands including Nautica, Reef, and Riders, said its outdoor and action sports brands were the largest contributor to revenue, registering $1.28 billion during the three months ended June 28. Outdoor label The North Face recorded sales growth of 11 percent globally in the quarter, while Vans revenues increased 21 percent. Timberland, which was acquired by VF in 2011, saw revenue climb 19 percent.
The company also saw direct-to-consumer revenues grow 18 percent in the second quarter with double-digit increases in all regions of the world and growth in nearly every VF brand with a retail format. Overall, direct-to-consumer revenues contributed 26 percent of total revenues, while the 41 new stores opened during Q2 helped boost that amount. VF currently owns 1,299 retail stores.
Eric Wiseman, VF chairman, president and chief executive officer, said, "Our strong second quarter results, led by our outdoor and action sports coalition, put us right in line with our full-year outlook and long-term growth commitments." He added, "Looking toward the second half of 2014, our powerful brands and platforms have us well-positioned to continue our momentum and deliver another record year for VF and its shareholders."
VF's outlook for the full year remains unchanged. Third quarter revenues are projected to increase at a similar rate as Q2, driven once again by outdoor and action sport product, international operations and its direct-to-consumer business.
second quarter earnings
VF Corporation
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