For the three months ended Sept. 30, net income rose 31.3 percent to $507.1 million, or $1.26 a diluted share, from $386.1 million, or 97 cents, a year ago. On an adjusted basis, EPS from continuing operations rose 19 percent to $1.43. Revenues rose 15.2 percent to $3.91 billion from $3.39 billion. The year-ago comparison excludes contribution from its Nautica business, which the company sold on April 30, 2018, and has since been classified as a discontinued business.
By category, the company said its active segment revenues rose 19 percent, which included a 26 percent gain at the Vans brand. The outdoor segment saw a 6 percent revenue gain, which included a 5 percent rise in The North Face brand. International revenues gained 13 percent, while direct-to-consumer grew 19 percent.
Wall Street was expecting EPS of $1.33 on revenues of $3.87 billion.
Steve Rendle, chairman, president and chief executive officer, said, “As we move into the second half of our fiscal year, we are confident in our growth engines as evidenced by the increase in both our dividend and full-year outlook. We continue to invest behind our strategy growth priorities, and the actions we are taking continue to advance our journey toward transforming VF into a purpose-led, performance-driven, consumer-centric organization focused on and committed to delivering superior returns to shareholders.”
The company raised full-year fiscal 2019 revenues guidance by 11 percent to at least $13.7 billion, with adjusted EPS now expected to be $3.65. Prior guidance was revenues between $13.6 billion to $13.7 billion, on adjusted EPS of between $3.52 and $3.57.
By segment, the company guided active revenues to grow 14 to 15 percent, outdoor to rise 7 percent; work to increase more than 35 percent and jeans to slip 1 to 2 percent.
The company said in August that it will move its global headquarters to Denver. It also said at the time that it would spin off its jeans business – Lee and Wrangler – into a separate, publicly traded business. The denim business will remain and be headquartered in Greensboro, N.C.