VF CORP EARNINGS DROP DURING FIRST QUARTER
VF Corporation has reported financial results for its first quarter ended April 2, 2016. Earnings per share was $0.61 per share compared with $0.67 per share during the same period last year; Operating income on a reported basis was down 15 percent to $336 million compared with the same period of 2015, and revenue was in line with last year at $2.8 billion, driven by strength in the company’s Outdoor & Action Sports and Jeanswear coalitions and direct-to-consumer and international businesses.
Brands that did well for the company include The North Face, Timberland. Lee Jeans, and Wrangler, all of which saw single-digit growth. Conversely, the company’s Sportswear, Contemporary Brands and Imagewear divisions all showed steep declines. In particular, Nautica posted a 14 percent decrease in brand revenues (in part due to a decision to license both women’s sleepwear and men’s underwear).
“Our first quarter results demonstrate the ability of our diversified business model to perform as expected in an inconsistent environment,” said Eric Wiseman, VF’s chairman and CEO. “By leveraging our strengths – driving innovation into the marketplace, connecting with consumers and operating with financial discipline – we are on track to deliver results consistent with our 2016 outlook, while also delivering on our commitment to shareholders.”
VF also announced that during the first quarter, the company purchased 11.3 million of its shares for $714 million at an average price of $63.13 under a program authorized by its Board of Directors. There are approximately 19 million remaining shares authorized for purchase. The Board of Directors also declared a quarterly dividend of $0.37 per share, payable on June 20, 2016, to shareholders of record on June 10, 2016.
