VF Profits Rise in Q2 from Continuing Operations
GREENSBORO, NC – VF reported higher profits from its ongoing divisions for the second quarter of 2007. However, a loss resulting from the sale of of its intimate apparel business resulted in a loss for the quarter. Revenue climbed 12% to $152 billion, driven by increases in outdoor, sportswear, jeans and imagewear businesses. Income from continuing operations in the current quarter increased 18% to a record $105.8 million, compared with $89.6 million in the prior year’s quarter.
For the first half of 2007, revenues rose 14% to a record $3,191.0 million from $2,806.9 million. Income from continuing operations increased 15% to $239.9 million, compared with $207.7 million in the prior year period. “The success of our brand portfolio management strategy is evidenced by another record quarter. Our core businesses, which remain strong and healthy, and the brands we have acquired over the last several years continue to drive tremendous shareholder value. Most importantly, we continue to see substantial opportunities for growth, particularly across our lifestyle brands,” said Mackey J. McDonald, Chairman and Chief Executive Officer. “Our two most recent acquisitions, the Eagle Creek and Majestic businesses, are performing very well, and we remain confident in our ability to successfully identify, acquire and integrate additional brands with strong growth potential.”
Of particular interest was the John Varvatos brand, which was reported to have sales increases exceeding 25% for the quarter. Nautica registered a 6% increase on a much larger base. The Kipling division also reported gains exceeding 25%.
VF brands include The North Face, Wrangler, Lee, Vans, Napapijri, Eastpak, Reef and JanSport, whose president was killed in a car accident last weekend.
