VF Corp. has reported a 5 percent rise to $207,207,000 in net income for the 3rd quarter, which ended Sept. 29, while total revenues grew by 15 percent to $2,053,136,000, with 9 percent growth excluding acquisitions. Gross margins and operating margins both increased by 10 basis points, and income from continuing operations was up by 13 percent to $209.3 million.
The company said the diversity of its products and distribution make it less dependent on a particular sales channel. It also believes that the current jittery retail environment will probably favor working with a broad stable of successful brands.
VF’s Outdoor Coalition reported a 16 percent increase in operating income to $161.3 million, with revenues expanding by 22 percent to $806.1 million. Sales were up by over 20 percent in both the USA and the rest of the world. The North Face, where revenues increased strongly in wholesale and retail during the period, had a double-digit increase in Spring 2008 bookings. Vans’ sales grew in every segment and its stores enjoyed double-digit growth on a comparable basis. Kipling and Napapijri rose strongly in Europe and Asia.
In the Imagewear Coalition, profit soared by 23 percent to $41.6 million on a 24 percent sales increase to $267.5 million. Majestic Athletic contributed $44 million in quarterly sales with organic growth up by 4 percent. In the new Contemporary Brands Coalition, which includes Lucy and 7 for All Mankind, operating income reached $4.9 million on sales of $32.7 million in only about one month of operation under VF’s ownership.
The company projects increases of 18 percents in revenues and 13 percent in profits for its 4th quarter. The projections for the full financial year have improved to 15 percent growth for revenues and more than 13 percent for earnings.
