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VF Corp Falls Despite Q1 Earnings Beat

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VF Corp Falls Despite Q1 Earnings Beat

VF Corporation (NYSE: VFC) reported first-quarter earnings Friday morning.

What Happened

The company generated a revenue of $3 billion, which was an increase of 22 percent from the same period last year. On an adjusted basis, gross margin increased 50 basis points to 50.8 percent.

Why It's Important

Both revenue and adjusted earnings per share from continuing operations were better than consensus. The company reported adjusted EPS of 67 cents against 65 cent estimates. This represents an increase of 30 percent from the same period last year.

Revenue was also better than expected, with consensus at $2.9 billion. The company reached an agreement to sell its Nautica Brand, which was completed in April. VF Corp also sold its Licensed Sports Group business. The loss on the sale of the Nautica Brand is included in the company's $8 billion after-tax net loss from discontinued operations.

What's Next

Management expects full-year fiscal 2019 revenue to be in the range of $13.45 billion to $13.55 billion, reflecting the growth of approximately 9 to 10 percent and they forecast full-year fiscal 2019 adjusted earnings per share in the range of $3.48 to $3.53, reflecting growth between 11 percent and 13 percent.

VF Corp dropped 2.8 percent Friday, trading around $76.26 at time of publication.

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