Apparel brand company VF Corp. ( VFC) posted a 20% increase in second-quarter earnings Wednesday, citing strength in its Kipling line and newly acquired Vans brand. The company, which also owns the Lee and Wrangler apparel brands, earned $90.1 million, or 80 cents a share, in the quarter ended July 3, compared with $74.9 million, or 68 cents a share, in the year-earlier quarter. Results included a gain of 6 cents a share related to disposition of the company's playwear business. Analysts were calling for a profit of 75 cents a share. Shares of the company were moving up 8 cents, or 0.2%, at $48.12. Sales rose 12% to $1.27 billion, slightly above the consensus for $1.26 billion. VF said its Nautica brand added $115 million to sales but hurt earnings by 4 cents a share. Meanwhile, the company's Vans, Napapijri and Kipling brands contributed $11 million to sales and a penny a share to earnings. North Face sales increased 25%, but sales in the company's jeanswear unit fell 6% to $579 million. Intimate apparel sales increased 12% to $235 million. Gross margin expanded to 39.4% as a percent of sales from 37.1% in the year-earlier quarter. VF expects third-quarter sales to jump 20% to 25% with earnings per share up 10%, including certain charges. The company earned $1.14 a share in the year-ago third quarter. Analysts' consensus is for $1.20 a share in the third quarter with sales of $1.53 billion. VF said full-year earnings should increase 8% over the prior year and that sales should be up 12% to 15%, possibly reaching $8 billion. The company earned $3.54 a share in the prior year, according to Thomson First Call. "We have tremendous momentum, which is giving us the opportunity to make investments that will fuel our future growth while still enabling us to deliver strong bottom-line results to our shareholders," the company said in a statement.
North Carolina-based VF will pay a quarterly dividend of 26 cents a share on Sept. 20.