Shares of VF Corp. fell 2.8 percent to $92.07 in New York Stock Exchange trading at noon today after the apparel maker posted second quarter results and issued conservative guidance for the back half of the year.

“We are taking a cautious outlook regarding retail and consumer trends for the second half of the year by maintaining our guidance for a 12 percent increase in both revenues and EPS,” the Greensboro, N.C.-based company said in a statement. “Operating margins should be strong and stable in the quarter while the tax rate will be slightly higher, reflecting credits recorded in the prior year period.”

For its third quarter, VF expects revenues to rise roughly 12 percent, and earnings from continuing operations to increase 10 percent. The company posted third-quarter earnings of $1.75 a share in the year-earlier period; analysts expect 2007 third-quarter earnings of $1.88, on revenue of $2.02 billion, according to Yahoo! Finance.

“We continue to see substantial opportunities for growth, particularly across our lifestyle brands,” said Mackey McDonald, chief executive officer of VF, in the statement.

But the company noted it expects a 7 cent a share loss from discontinued operations for full-year 2007 due to the anticipated gain on assets yet to be sold throughout the remainder of the year.

Including the impact from the company’s discontinued intimate apparel business, VF reported second-quarter net income of $81.7 million, or 72 cents a share, down from $99 million, or 88 cents a share in the year-earlier period.

Earnings from continuing operations rose to 93 cents a share, including a 4 cent gain from trademarks and intellectual property, up from 80 cents a share in the year-earlier period.

Second-quarter sales came in at $1.52 billion, up 12.3 percent from $1.35 billion in 2006’s second quarter, driven by higher revenue from VF’s outdoor, jeanswear, sportswear and imagewear businesses.

Analysts expected second-quarter earnings of 87 cents a share on revenues of $1.53 billion.

Meanwhile, VF declared a regular quarterly cash dividend of 55 cents a share, payable Sept. 20 to shareholders of record as of Sept. 10.

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