Despite an incredibly difficult economy for retailers, VF Corp. still raised its profit and revenue guidance when it reported second-quarter earnings Tuesday. CEO Eric Wiseman told Cramer during today’s show how his company did it.
“It’s spotty out there,” the CEO said. But the breadth of VF’s portfolio is serving the company well. “We have enough businesses doing well that, on balance, we’re doing just fine this year.”
Wiseman did explain some of the weaker parts of VF’s business, such as Wrangler, the company’s biggest brand, and Nautica.
Wrangler sells mainly to those hit hardest by the economy, and for that reason the jeans line has had a “tougher year.”
As for Nautica, Wiseman said most of the external factors causing problems for the brand are in the past, and now he’s working on internal execution.
“We’ve got great hopes for improvement and profitability in the back half of this year,” Wiseman said. “We think next year we’ll begin to see the top line move forward and get some growth going again.”
“Gasoline’s going down. People are going to shop again,” Cramer said. “You know what they’re going to buy?”
Questions for Cramer? firstname.lastname@example.org
Questions, comments, suggestions for the Mad Money website? email@example.com