Branded lifestyle apparel maker VF Corp. (VFC) Friday reported an increase in fourth-quarter profit, reflecting higher sales and improved margins. Adjusted earnings, excluding items, beat analysts' expectations, while revenues missed view. The company also forecast earnings and revenues for full-year 2013 below consensus.
In the fourth quarter, net income attributable to the company climbed to $334.17 million or $2.98 per share from $257.32 million or $2.28 per share in the prior year.
Adjusted earnings, excluding items, totaled $3.07 per share in the recent quarter, while it was $2.32 per share last year..On average, 18 analysts polled by Thomson Reuters expected earnings per share of $3.03 for the quarter. Analysts' estimates typically exclude one-time items.
Revenues for the quarter grew 4 percent to $3.03 billion. At constant dollars, revenues were up 5 percent. Analysts estimated revenues of $3.07 billion for the quarter.
The company said sales growth was driven by strength in the Outdoor & Action Sports and Sportswear coalitions, and its international and direct-to-consumer businesses. The John Varvatos sale in April 2012 affected VF's revenue growth by 1 percentage point in the fourth quarter, it added.
Gross margin rose 220 basis points to 47.4 percent, reflecting improvements in every coalition. The higher gross margin was due to continued shift in revenue mix towards higher margin businesses and lower year-over-year product costs, VF stated.
Commenting on full-year 2012 results, Eric Wiseman, chairman and chief executive officer of the company said, "2012 was another year of record revenues and profits for VF, with solid results across nearly every coalition, channel and geography. Our performance is confirmation of our greatest competitive advantage - the diversity of our portfolio."
Looking ahead to full-year 2013, the company expects adjusted earnings per share to grow 11 percent to $10.70, while GAAP earnings per share are likely to increase 9 percent to about $10.60.
Sales for the year are anticipated to increase by about 6 percent to $11.5 billion, including growth in every coalition. Analysts project earnings of $10.95 per share, on $11.86 billion revenue for 2013.
The board has also declared a quarterly dividend of $0.87 per share, to shareholders of record on March 8, 2013, payable on March 18.
VFC is currently trading at $156.50, up 2.41 percent.
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