(RTTNews) - Branded apparel maker VF Corp. (VFC: News ) on Monday reported a decline in net profit for the third quarter, reflecting higher pension expense and unfavorable foreign currency translations. Both earnings and revenues came in short of analysts' consensus estimate. Based on the quarter's results, VF raised its earnings forecast for fiscal year 2009. Shares of VF dropped by more than 5% in the after-hours trading, following the announcement of results.

Eric Wiseman, Chairman, President and Chief Executive Officer, VF Corp said, "We achieved an important improvement in our third quarter performance relative to the first half of the year as conditions have stabilized, giving us the confidence to move our earnings guidance toward the higher end of our prior range."

For the third quarter, the Greensboro, North Carolina-based company's net income attributable to VF Corp. decreased to $217.92 million or $1.94 per share from $233.90 million or $2.10 per share in the same period last year.

Results for the quarter were negatively impacted by a $0.11 per share from higher pension expense and $0.06 per share from foreign currency translation, respectively, and the absence of a $0.07 per share benefit from unusual items recorded in the year-ago quarter.

On average, 11 analysts polled by Thomson Reuters expected the company to earn $1.95 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.

In the preceding second quarter, VF reported a net income of $75.5 million or $0.68 per share, down from $104.0 million or $0.94 per share in the year-ago quarter. Analysts expected earnings of $0.59 a share for the quarter.
Revenues for the third quarter were $2.09 billion, down 5% from $2.21 billion in the year-earlier quarter, with foreign currency translation accounting for two percentage points of the decline. Analysts expected the company to report revenue of $2.10 billion for the quarter.

For the preceding second quarter, sales declined 11% to $1.49 billion from $1.68 billion in the year-earlier period.

The company's revenues from VF's outdoor and action Sports coalition for the recent third quarter were about even with last year, but rose 3% on a constant currency basis. Jeanswear revenues declined 16% from the prior-year quarter. On a constant currency basis, revenues dropped 7% year-over-year. Revenues of sportswear coalition, which includes Nautica brand and the Kipling brand in North America grew 4% from the prior-year quarter.

To receive FREE breaking news email alerts for VF Corp and others in your portfolio

 1   2   3   Next Page