UPDATE: VF Corp Posts Downbeat Q3 Profit, Lifts Earnings Forecast

VF Corp

reported weaker-than-expected third-quarter profit and lifted its earnings forecast for the full year. The Greensboro, North Carolina-based company posted a quarterly profit of $470.5 million, or $1.08 per share, versus a year-ago profit of $433.8 million, or $0.97 per share. Its revenue climbed 7% to $3.52 billion. However, analysts were expecting earnings of $1.09 per share on revenue of $3.57 billion. Revenue for the Outdoor & Action Sports coalition rose 11% to $2.2 billion, while Imagewear revenue gained 3% to $293 million. Sportswear revenue climbed 5% to $163 million, while Contemporary Brands coalition revenue slipped 5% to $99 million. International revenue climbed 9%, while revenue in Europe surged 8%. Revenue in the Asia Pacific region jumped 18%, while revenue in the Americas (non-U.S.) region climbed 4%. Gross margin widened 70 basis points to 48.3%, while operating income rose 9% to $633 million. “Our third quarter results validate our growth strategy and demonstrate our ability to manage our powerful portfolio in ways that ensure we deliver solid results,” said Eric Wiseman, VF Chairman, President and Chief Executive Officer. VF Corp now expects full-year profit of $3.08 per share on sales of $12.30 billion. Analysts expected a profit of $3.10 per share. VF's board declared a quarterly dividend of $0.32 per share. VF Corp shares fell 0.34% to close at $63.76 on Friday.