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VF 2nd-Quarter Profit and Full-Year Outlook Top Estimates

Apparel maker VF second-quarter earnings and revenue were down year over year, but its results and outlook exceeded analysts' estimates.

VF VFC shares were higher after the apparel maker reported fiscal-second-quarter results and a full-year outlook that topped analyst estimates. 

For the quarter ended Sept. 26 the owner of the North Face and Timberland brands earned 66 cents a share against $1.61 in the year-earlier quarter. The latest adjusted earnings were 67 cents a share. 

Revenue fell to $2.61 billion from $3.18 billion. 

A survey of analysts by FactSet produced consensus estimates of GAAP earnings of 49 cents a share, or an adjusted 48 cents, on revenue of $2.49 billion. 

"We are beginning to see signs of stabilization and strength across all aspects of our business, supporting our decision to raise the dividend and provide a financial outlook for the balance of the year," Chief Executive Steve Rendle said in a statement. 

The company says that its results year to date reflect its expansion of its digital business as well as its growth in China. Rendle called those factors "two of our key growth pillars."

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Nearly all VF's retail stores in Europe, the Middle East and Southeast Asia remained open during the second quarter, while 95% of retail locations in North America were open at the end of the second quarter.

For the year, VF expects adjusted earnings of at least $1.20 a share, which would be off 55%. Full-year adjusted revenue should come in at $9 billion or more, VF estimated. That figure would be a drop of 14%.

The FactSet survey is expecting adjusted earnings of $1.11 a share on revenue of $8.82 billion.

"Although uncertainties remain, investments in our digital transformation are resulting in near-term momentum and improved capabilities to emerge in an even stronger position," Rendle said. 

VF shares at last check rose 1.3% to $78.72.