Reported EPS down 1% at VF Corp in Q3FY16

26 Oct '15

2 min read

For its third quarter ended October 3, 2015, earnings per share on a reported basis were down 1 per cent year over year to $1.07 at apparel marketer VF Corporation.

Net sales for the third quarter of fiscal 2016 rose 3 per cent to $3.58 billion from $3.48 billion over the same period in the prior fiscal.

Gross margin was 48.9 per cent on a currency neutral basis in the reporting quarter, representing a 60 basis point improvement over the same quarter last fiscal.

“Reported gross margin was down 40 basis points to 47.9 per cent as benefits from more favourable product costs and continued mix shift to higher margin businesses,” the apparel marketer said.

“These were offset by foreign currency headwinds in the quarter, especially movements in the euro, Chinese renminbi, British pound sterling, Canadian dollar and Mexican peso,” it explained.

Currency neutral operating income was up 14 percent and 2 percent on a reported basis to $643 million compared with the same period in fiscal 2015.

Currency neutral operating margin stood at 19.0 per cent, a 100 basis point improvement over third quarter of fiscal 2014.

“Reported operating margin declined 20 basis points to 17.8 per cent due to the negative impact from changes in foreign currency,” the company added.

Inventories were up 12 per cent in the quarter under review compared to the third quarter from earlier fiscal reflecting order book timing and an increase, in line with expectations.

VF chairman Eric Wiseman said, “The results speak to the power of VF's brands and platforms to perform well in what is proving to be a mixed retail environment.”

“We delivered excellent operating results by staying focused on bringing relevant, innovative products to the marketplace and driving operational excellence into every area of our business,” he too added. (AR)

Fibre2Fashion News Desk – India

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