Shares of VF Corp. rose 4.5 percent in premarket trading after the company posted first-quarter results that easily beat Wall Street’s estimates for earnings per share and revenues, plus the firm also raised guidance for fiscal-year 2019.
For the quarter ended June 30, net income jumped 45.9 percent to $160.4 million, or 40 cents a diluted share, versus $109.9 million, or 27 cents, a year ago. Adjusted EPS was 43 cents, including contribution of 4 cents from acquisitions.
Total revenues rose 22.9 percent to $2.79 billion from $2.27 billion. Revenues included a corresponding 22.8 percent increase in net sales to $2.77 billion from $2.25 billion. Excluding the acquisitions of Williamson-Dickie, Icebreaker and Altra brands, revenue rose 12 percent and was driven mostly by VF’s international and direct-to-consumer platforms and its Active and Work segments.
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Wall Street was expecting adjusted EPS of 33 cents on revenues of $2.68 billion.
Shares of VF were trading at $93.20 at 7:31 a.m.
The company in the last few quarters has made some acquisitions, divestitures and organization realignments, and to better reflect those changes it also has new reportable segments. The segments are Outdoor, Active, Work and Jeans. The company said its first-quarter comparisons include a recast of historical financial information to reflect the reportable segments.
Steve Rendle, chairman, president and chief executive officer, said the results were driven by “continued broad-based acceleration” across the company’s core brands and platforms. “We are executing well against our 2021 growth plan and continuing on our journey to reshape the portfolio and transform VF into a purpose-led, performance driven, consumer-centric organization focused on and committed to delivering superior returns to shareholders.”
The company updated its outlook for fiscal-year 2019. It guided EPS to the range of $3.52 to $3.57, up from the prior guidance of $3.48 to $3.53. It now expects revenue in the range of $13.6 billion to $13.7 billion, or an increase of at least 10 percent. The previous guidance had forecast revenue in the range of $13.45 billion to $13.55 billion.
By segment, the company said Work revenues are expected to increase more than 35 percent, with Active a close second, up at least 13 percent. Outdoor was estimated at a 6 percent growth rate, and jeans was likely to be flat compared to last year. The company also said it expects international revenues to rise about 12 to 13 percent, compared with prior estimates of 13 percent to 15 percent. And direct-to-consumer is forecasted to grow between 11 and 13 percent, up from prior expectations of a growth range of 8 to 10 percent.