V.F. Corporation Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2015; Revises Earnings Guidance for the Full Year 2015; Provides Earnings Guidance for the Third and Fourth Quarter of 2015
Jul 24 15
V.F. Corporation reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2015. For the quarter, the company reported net sales of $2,484,189,000 against $2,373,408,000 for the same period in the last year. Total revenues were $2,513,860,000 against $2,402,076,000 for the same period in the last year. Operating income was $223,027,000 against $219,808,000 for the same period in the last year. Income before income taxes was $202,569,000 against $199,481,000 for the same period in the last year. Net income was $170,811,000 or $0.40 per diluted share against $157,682,000 or $0.36 per diluted share for the same period in the last year. Earnings per share was up 22%, was helped by about $0.02 from an expected lower tax rate. But even so, without the tax benefit on a currency-neutral basis, EPS was up 17%, a very strong result in smallest earnings quarter of the year.
For the six months, the company reported net sales of $5,287,491,000 against $5,123,523,000 for the same period in the last year. Total revenues were $5,351,161,000 against $5,182,854,000 for the same period in the last year. Operating income was $620,862,000 against $622,998,000 for the same period in the last year. Income before income taxes was $581,481,000 against $581,273,000 for the same period in the last year. Net income was $459,520,000 or $1.06 per diluted share against $454,875,000 or $1.03 per diluted share for the same period in the last year. Cash used in operating activities was $286,446,000 against cash provided by operating activities of $219,587,000 for the same period in the last year. Capital expenditures were $125,504,000 against $95,844,000 for the same period in the last year. Software purchases were $43,450,000 against $56,042,000 for the same period in the last year.
The company revised earnings guidance for the third quarter, fourth quarter and full year 2015. For the Full year, the revenue expectations are unchanged, with an 8% increase on a currency neutral basis (up 3% reported). Revenue for the Outdoor & Action Sports coalition is expected to increase at a low double-digit currency neutral percentage rate (up mid single-digit reported). There is no change to the company’s expectation that currency neutral gross margin should improve by 70 basis points to reach about 49.5% for the full year. Based on expected changes in foreign currency for the balance of the year, reported gross margin is now expected to be closer to 49% compared with the previous expectation of 49.2%. Earnings per share, on a currency neutral basis, is now expected to increase 15% compared to an adjusted EPS of $3.08 in 2014. This is an increase from the previous expectation of 14% per share growth provided on May 1, 2015. Earnings per share, on a reported basis, is now anticipated to increase by 5% to $3.22 compared to adjusted earnings per share of $3.08 in 2014. This is an increase from the previous expectation of 4% per share growth to $3.20 given on May 1, 2015.
For the third quarter, the currency neutral and reported revenues are expected to increase at nearly the same rates as those of the second quarter driven by strength from the Outdoor & Action Sports and Jeanswear coalitions, international operations and continued strength in direct-to-consumer businesses.
For the fourth quarter, currency neutral revenue should increase at a rate slightly lower than third quarter results due to the tougher comparison against the same period of 2014 which included a 53rd week. The strongest margin and profit comparisons of the year are expected in the fourth quarter, when the direct-to-consumer business makes the most significant contribution of the year, the negative impact of currency lessens and lower product costs are realized.
VF Corporation Appoints Steven E. Rendle as President & Chief Operating Officer and Member of its Board of Directors
Jun 24 15
VF Corporation announced that Steven E. Rendle, 55, has been appointed President & Chief Operating Officer at the company and has been elected to its board of directors. He will report to Eric Wiseman, VF’s Chairman and Chief Executive Officer. In his role as President & Chief Operating Officer, Rendle will oversee all of VF’s business coalitions worldwide: Outdoor & Action Sports, Jeanswear, Imagewear, Sportswear and Contemporary Brands. He will also be responsible for VF’s global Supply Chain and Direct-to-Consumer platforms.