Shares of VF Corp. rose 3.2 percent in pre-market trading after the company posted third-quarter results that bested Wall Street’s expectations and raised its full-year outlook.
VF said net income fell 22.5 percent to $386.1 million, or 97 cents a diluted share, from $498.5 million, or $1.19, a year ago. On an adjusted basis, excluding a noncash goodwill impairment charge, earnings per share from continuing operations were up 6 percent to $1.23. The noncash impairment charge is related to the Nautica brand in the amount of $105 million and $5 million of transaction and deal related expenses connected with its acquisition of Williamson-Dickie. The third quarter ended on Sept. 30.
Total revenues in the quarter were up 5.4 percent to $3.51 billion from $3.33 billion. Revenues included a 5.5 percent increase in net sales to $3.48 billion from $3.30 billion. The balance of revenues came from royalty income.
Wall Street was expecting adjusted EPS at $1.12 on revenues of $3.39 billion.
Steve Rendle, president and chief executive officer, said the quarter’s results were fueled by “accelerated momentum” in the firm’s international and direct-to-consumer platforms and in its outdoor and action sports and workwear businesses.
“Based on the strength of our third-quarter performance and the stronger growth trajectory we see for the remainder of 2017, we are again increasing our full-year outlook and making additional growth-focused investments aimed at accelerating growth and value creation into 2018 and beyond. VF remains committed to returning cash to shareholders as evidenced by the increase in our dividend, which is supported by the strength of our balance sheet and the confidence we have in our strategic growth plan,” Rendle said.
The company’s board on Thursday declared a quarterly dividend of 46 cents a share, or a 10 percent increase over the previous quarter’s dividend. The dividend will be payable on Dec. 18 to shareholders of record at the close of business on Dec. 8.
For 2017, the company said it expects GAAP EPS to be $2.73, and $3.01 on an adjusted basis, compared with the previous forecast of $2.96. That’s compared with 2016 adjusted EPS of $2.98. The company said revenues are now expected to rise 6 percent to $12.1 billion, compared with the previous guidance of $11.85 billion.
Shares of VF were trading at $68.50 at 8:09 a.m.