VF Corp. — now unbound — is aiming higher.
But it’s still working through the impact of its previous incarnation, which included the now-spun-off Kontoor Brands jeans business.
The firm’s first-quarter net earnings fell to $49.2 million, or 12 cents a diluted share, from $160.4 million, or 40 cents, a year earlier. However, adjusted earnings from continuing operations increased 61 percent to 30 cents.
Revenues for the three months ended June 30 increased 6 percent to $2.27 billion from $2.14 billion. Sales in the company’s active segment rose 8 percent, with a 20 percent jump at Vans while, VF’s outdoor business grew the top line by 7 percent, including a 9 percent advance at The North Face.
Direct-to-consumer revenues increased 14 percent with a 24 percent rise online.
“Our first quarter represents a new chapter for VF following the spin-off of Kontoor Brands and our relocation to Denver,” said Steve Rendle, chairman, president and chief executive officer. “Our first-quarter results demonstrate the power of VF’s evolved portfolio and our progress along our journey to become a purpose-led, performance-driven, value-creating enterprise anchored in our commitment to be more consumer-minded and retailcentric in everything we do. As a result of our strong results and increased confidence in the full year, we are raising our fiscal 2020 outlook, including an additional $20 million of investments aimed at accelerating growth and value creation in fiscal year 2020 and beyond.”
VF opened up some upside to its annual earnings estimate, projecting a range of $3.32 to $3.37 a share, up from the $3.30 to $3.35 previously forecast.