VF REPORTS SECOND QUARTER EARNINGS LOSS AS NAUTICA REVENUE TANKS
North Carolina-based VF Corporation reported financial results for its second quarter ended July 2, 2016, which included a $97 million net loss from discontinued operations which includes both the estimated loss recorded for the expected sale of the Contemporary Brands businesses (which include the 7 For All Mankind, Splendid and Ella Moss brands) to Delta Galil, and the operating results for the businesses during the quarter.
Overall, earnings per share was $0.35 compared with $0.39 during the same period last year, while revenue increased 1 percent to $2.4 billion, driven by positive results from the company’s Outdoor & Action Sports, Jeanswear and Imagewear coalitions and its direct-to-consumer and international businesses.
Among specific brands, North Face, Vans, Lee Jeans, and Wrangler all saw increased revenues, while Nautica’s revenue declined a whopping 19 percent and Timberland revenue was down 7 percent, including a high-teen percentage rate decrease in the Americas region.
“Our second quarter results were in line with our expectations, despite a challenging environment with mixed economic and currency conditions around the world,” said Eric Wiseman, VF Chairman and Chief Executive Officer. “Earlier this year, we said we would actively manage our portfolio of brands and we’re doing just that. We expect to deliver on our current 2016 outlook and, as a result of the actions we are taking, be even better positioned to provide the strong long-term returns our shareholders have come to expect.”
