VF Corp. posted second-quarter results that beat Wall Street’s consensus forecasts for EPS and revenues.
For the three months ended July 1, the company said net income doubled to $109.9 million, or 27 cents a diluted share, from $51.0 million, or 12 cents, a year ago. Total revenues rose 1.7 percent to $2.36 billion from $2.32 billion, with net sales also rising 1.7 percent to $2.33 billion from $2.29 billion. VF sold its licensing business in April and its contemporary brands group last August. The operations were listed as discontinued operations.
On an adjusted basis, diluted EPS for continuing operations was 29 cents. Wall Street was expecting EPS of 28 cents on revenues of sales of $2.29 billion.
The company said that the revenue gain was driven by broad-based strength across its international and direct-to-consumer platforms, its outdoor and action sports coalition and its workwear businesses.
The company also updated its 2017 outlook. VF said it expects EPS to be $2.94, compared to its prior range of $2.89 to $2.94, and forecasted revenues at about $11.65 billion.
The company’s board declared a quarterly dividend of 42 cents a share, payable on Sept. 18 to shareholders of record on Sept. 8.
Further, the company said Eric Wiseman will retire as executive chairman and as a director on Oct. 28. VF’s board has elected Steve Rendle, president and chief executive officer, to the role of chairman upon Wiseman’s retirement. Rendle is currently a director on the board.
The change would complete the company’s planned leadership succession, which began with Rendle’s promotion to president and chief operating officer in June 2015 and then to ceo this past January.
Rendle said, “Eric is a proven leader and throughout his career he has inspired others to excellence. His success has always been guided by values that are core to who he is, including respect, integrity, determination and grit.” The ceo noted that the company’s share price more than tripled during Wiseman’s tenure as ceo.
Shares of VF rose 1.5 percent in pre-market trading to $59.50 at 7:25 a.m.