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Monday, October 26, 2009

VF Corp. Narrows Guidance, Misses Estimates in 3Q

By Kathryn Glass

FOXBusiness

Apparel manufacturer VF Corporation (VFC) reported third-quarter results Monday that missed analyst estimates and issued a lower-than-expected full-year guidance.

For the full year, the company expects revenue to fall 6% from last year’s revenue of $7.643 billion, and it narrowed its forecast to a range of $4.85 and $5.00 per share, compared to the previous forecast of $4.70 to $5.00 per share. Analysts were expecting VF Corp. report earnings of $4.99 per share on revenue of $7.238 billion.

The company also raised its dividend to 60 cents per share, an increase of 2%.

For the third quarter, the sportswear and denim-maker saw profit slide 6.8% to $217.9 million or $1.94 per share, compared to net income of $233.9 million or 2.10 per share in the third-quarter of 2008. Analysts were expecting earnings of $1.95 per share.

Revenue fell 5% to $2.09 billion, compared to $2.21 billion in the year-ago period.

The company said improved third-quarter performance allowed the company to guide toward the higher end of the prior range forecast.

"Our relentless drive to control costs, reduce inventories and focus investments on our highest return opportunities has served us very well during these difficult and volatile times,” said Eric C. Wiseman, Chairman, president and CEO in a statement. “We will continue this disciplined approach through the balance of this year and into 2010 to maximize opportunities for both top and bottom line growth."

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