NEW YORK (TheStreet) -- VF Corp (VFC) stock is gaining Friday after the apparel company reported better-than-expected earnings in its first quarter, driven by double-digit growth in key brands Timberland, Vans and The North Face.
By late morning, shares had added 1.9% to $61.26.
Over the three months to March, VF Corp generated sales 6.5% higher year over year to $2.8 billion, driven by double-digit growth in its outdoor and action sports portfolio. Sales in that division, which include brands The North Face and Timberland, spiked 14% and accounted for more than half of total revenue.
Growth in those brands more than made up for weakness in its jeanswear segment, which includes Lee and Wrangler. Sales among those products dropped 4% from a year earlier.
VF Corp's bottom line also exceeded expectations with earnings of 67 cents a share coming in 4 cents higher than what analysts surveyed by Thomson Reuters had forecast.
TheStreet Ratings team rates VF CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate VF CORP (VFC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."