(Filed Under Financial and General Interest News). VF Corporation earnings rose 8% to $498.5 million on total revenue that declined 1% to $3.488 billion for the three months ended September 30th.
“We continue to operate in an uneven, global economic environment including especially sluggish retail conditions in the Americas, our largest market,” declared Eric Wiseman, chairman and CEO, as he released the results. “With a strong balance sheet, powerful brands, and a growing global presence, we have great confidence in our ability to maintain near-term profitability, yet we’re not satisfied with our third quarter results. We remain sharply focused on operational improvements and taking advantage of this environment to accelerate strategies to create sustainable, long-term growth opportunities for our brands.”
The company also noted that “On August 26, 2016, the company completed the sale of its Contemporary Brands businesses, which included the 7 For All Mankind, Splendid and Ella Moss brands, to Delta Galil Industries, Ltd.” The purchase price was $120 million (see BODY July 7, 2016). VF said its “net loss from discontinued operations was about $5 million in the third quarter of 2016, which includes both the final adjustment to the loss on the sale of the Contemporary Brands businesses and the operating results for the businesses during the quarter, net of tax.”
VF designs, manufactures, and distributes a wide variety of apparel, footwear and accessories. Its largest brands are The North Face, Vans, Timberland, Wrangler, Lee and Nautica. In its release it noted, “Sportswear third quarter revenue declined 13 percent to $141 million including a 15 percent decrease in Nautica brand revenue and a 6 percent decline in the Kipling brand’s North American business compared with the same period last year. These results reflect ongoing challenges in the U.S. department store and outlet channels, and general category demand. Additionally, the strategic decision to license the women’s sleepwear and men’s underwear businesses negatively impacted Nautica brand revenue by about 8 percentage points in the quarter. Operating income for Sportswear decreased 35 percent to $15 million with operating margin at 10.7 percent, compared to 14.3 percent in the same period last year.”
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