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Retail

VF Corp raises full-year profit forecast after beating quarterly estimates

Key Points
  • VF Corp.'s quarterly revenue and earnings beat Wall Street expectations.
  • The company also raised its full-year profit forecast, banking on growing demand for its brands such as Vans and North Face.
  • The company now expects full-year adjusted profit from continuing operations to be in the range of $3.32 to $3.37 per share, compared with its previous forecast of $3.30 to $3.35 per share.
Vans sneakers on beach
Source: Vans

VF Corp.'s quarterly revenue and earnings beat Wall Street expectations on Wednesday and the company raised its full-year profit forecast, banking on growing demand for its brands such as Vans and North Face.

The company now expects full-year adjusted profit from continuing operations to be in the range of $3.32 to $3.37 per share, including an $20 million additional investment, compared with its previous forecast of $3.30 to $3.35 per share.

The apparel maker spun-off its less-profitable jeans business, including Lee and Wrangler brands, in May into Kontoor Brands Inc to focus on the high-margin brands such as Vans and North Face.

Revenue from Vans, popular among skateboarders, jumped 20% in the first quarter, while that from North Face rose 9%.

Net revenue rose 6.3% to $2.27 billion, beating analysts' estimate of $2.24 billion, according to IBES data from Refinitiv.

Net income fell to $49.2 million, or 12 cents per share, in the quarter ended June 29, from $160.4 million, or 40 cents per share, a year earlier, primarily due to the spin-off of its jeans business.

Excluding items, the company earned 30 cents per share, beating analysts' estimate by a cent.

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Air Freight and Logistics

UPS profit rises as e-commerce shipping speeds up

Key Points
  • United Parcel Service said demand for its Next Day Air and Ground services drove better-than-expected quarterly profit as large retailers rushed packages to online shoppers.
  • Next Day Air volume surged an unexpected 30% in UPS' key domestic business during the second-quarter, as Amazon.com and other large retailers adopted one-day shipping. More profitable Next Day Air and Ground services helped boost margins in the United States.