This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

VF 4Q Net Income Surges, 2012 Outlook Disappoints

Stocks in this article: TBL VFC

GREENSBORO, N.C. (AP) â¿¿ VF Corp.'s net income more than quadrupled in the fourth quarter due to the recent acquisition of Timberland, but there were indications that investors were not thrilled with the footwear company's outlook also released Thursday.

VF said it expects adjusted earnings of about $9.30 per share, short of analysts predictions for $9.53 per share. Revenue is predicted to climb about 15 percent, or 17 percent on a constant dollar basis. This implies revenue of about $10.78 billion, or $10.96 billion on a constant dollar basis. Wall Street had been looking for revenue of $11.24 billion.

The results from the most recent quarter were more of a mixed bag.

VF earned $257.3 million, or $2.28 per share, for the three months ended Dec. 31, compared with $54.2 million, or 49 cents per share, a year earlier. The Timberland deal, which closed in September, added 34 cents per share.

If that deal and some one-time items are removed, the Greensboro, N.C. company edged out Wall Street expectations by a penny.

Revenue soared 37 percent to $2.88 billion thanks toTimberland and a strong performance from its outdoor and action sports division. The unit, which includes The North Face and Smartwool brands, reported an 81 percent revenue increase. Timberland added $549 million to revenue in the quarter.

Yet gross margin fell to 45.2 percent from 46.6 percent on higher production costs. Clothing companies have wrestled with increased costs for cotton and other raw materials. VF and others have been forced to raise prices in an environment in which consumers are still not spending like they used to.

There was good news for retailers and just about everyone else Thursday. The number of people seeking unemployment benefits fell to the lowest point in almost four years last week, the latest signal that the job market is steadily improving.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs