Double-digit growth on both the top and bottom lines in its Outdoor & Action Sports coalition pushed VF Corp.’s fourth-quarter earnings up 10 percent.
However, the company’s sales and earnings fell shy of analysts’ consensus estimates, as did the company’s initial guidance for 2014.
VF noted that 2013 marked the arrival of The North Face as its first $2 billion brand globally, while Vans surpassed $1.7 billion in sales to become its second largest brand.
In the three months ended Dec. 28, the Greensboro, N.C.-based apparel giant reported net income of $367.7 million, or 82 cents a diluted share, from $334.2 million, or 75 cents, in the year-ago quarter. Revenues rose 8.5 percent to $3.29 billion from $3.03 billion.
Analysts had estimated EPS of 84 cents and revenues of $3.34 billion.
“The combined power of our brands and platforms remains our greatest competitive advantage, enabling us to push the envelope on product innovation to connect even more intensely with consumers and providing stellar returns to our shareholders,” said Eric Wiseman, chairman and chief executive officer of VF.
Gross margin in the quarter hit 48.2 percent of revenues, up from 47.4 percent a year ago, based on shifts to higher-margin businesses and comparably lower product costs. Last year, VF’s direct-to-consumer businesses grew 13 percent and accounted for 22 percent of revenue, 1 point higher than in 2012.
The Outdoor & Action Sports group’s sales were up 12.3 percent to $1.92 billion in the quarter, with operating income in the segment up 11.2 percent to $358.2 million. Jeanswear sales declined less than 0.1 percent, to $734.1 million, while profits in the group moved up 2.2 percent to $134.3 million.
For 2014, VF projected earnings of between $3 and $3.05 a share on sales growth of between 7 and 8 percent, which would lift revenues to about $12.2 billion. Wall Street began the day expecting EPS of $3.09 on revenues of $12.45 billion. The disparity pushed VF shares down more than 5 percent in pre-market trading Friday.
VF said it expected the pace of business to accelerate as the year progresses, with midsingle-digit growth in the first half of the year followed by high-single-digit growth in the latter half.
Full-year profits were up 11.4 percent to $1.21 billion, or $2.71 a diluted share, while revenues rose 5 percent to $11.42 billion.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)