VFC, TRLG & PVH: Denim Tears Up Earnings Season

Despite a bit of a slowdown, North Face (TNF), Timberland (TBL) and Vans reported positive earnings for global apparel company V.F. Corp

during its conference call last Friday. With outdoor conditions impacting shares heavily this year, it is no wonder that cold weather gear distributors have witnessed weaker quarters. However, VFC won't let a little bit of sunshine ruin its diverse empire, as sneakers and denim sales improved immensely. Due to the lack of snow the country saw this winter, TNF and TBL experienced decreased interest from consumers as Q1 progressed. Both brands were hyped in previous quarters, but neither company saw impressive numbers this time around. However, Vans sneakers picked up the slack with 27% constant-currency global growth. "[This] authentic $1+ billion action sports brand should continue to garner investor focus given the own retail expansion (7 U.S. stores opened YTD) and strong growth in e-commerce (+40% in 1Q)," ISI Group said in a recent research report. "[We] are becoming increasingly intrigued by the long-tailed growth opportunities for the brand globally." With strong revenue progression and smartly played mergers and acquisitions, analysts were obviously impressed with VFC's ability to resist Mother Nature's trickery this season. The corporation is consistently seeing improvement in its Jeanswear sector, with Lee and Mass Market bumping growth up +9%. Also remaining a dominant force amongst the jean category is VFC competitor True Religion Apparel

. According to Brean Murray Carret & Co., the company is still one of the top players in the men's denim group. It is expected that the earnings call, scheduled for tomorrow, May 1st, could be a catalyst for material reward. The weather may be improving daily, but that doesn't mean men and women are ready to let their legs show. American consumers are also covering up with PVH Corp's

many well-known denim brands. Calvin Klein and Tommy Hilfiger continue to stay durable in the country, with Calvin particularly staying in the high-single-digit positive comp range. Jean brands are continuing to make their presence known in the retail market at a time when dresses, shorts and skirts are being snatched up across the nation. Day to day weather can change drastically, but with other companies earnings calls scheduled near-term, the disappointing cold weather season should not be a further catalyst for weaker sales. With springtime colors being introduced and pasty white legs requiring further cover, the jean market is sure to see continued success over the next few months. VFC is currently trading at $152.63, up +51.87% YoY, while PVH is trading at $88.93, up +26.3% YoY. Comparatively, TRLG is trading at $26.98, up +10.79% YoY.