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VF Corp reports 8% growth in Q4 FY'13 revenues

14 Feb '14

4 min read

SG&A as a percent of full year revenue rose 50 basis points to 33.6 percent. This increase includes the impact of higher marketing expense that increased the SG&A ratio by 60 basis points, including the nearly $40 million in incremental marketing investments in the second half of 2013 that increased the SG&A ratio by 40 basis points.

Operating income on an adjusted basis increased 11 percent to $1.7 billion in 2013. On a GAAP basis, full year operating income rose 12 percent to $1.6 billion from $1.5 billion in 2012. Acquisition-related expenses for Timberland in 2013 and 2012 were $11 million and $31 million, respectively. Adjusted operating margin was 14.5 percent compared with 13.8 percent in 2012. On a GAAP basis, operating margin was 14.4 percent versus 13.5 percent in 2012.

Net income on an adjusted basis rose 13 percent to $1.2 billion compared to $1.1 billion in 2012. Adjusted earnings per share, which excludes $0.02 in Timberland acquisition-related expenses in 2013 increased 13 percent, to $2.73 from $2.41 in the same period last year. Adjusted earnings per share of $2.41 in 2012 exclude a combined $0.02 in Timberland acquisition-related expenses and the gain from the sale of John Varvatos. On a GAAP basis, full year net income was $1.2 billion while earnings per share grew 12 percent to $2.71 per share.

“2013 was a terrific year for VF with record gross margin and earnings per share,” said Eric Wiseman, VF Chairman and Chief Executive Officer. “The combined power of our brands and platforms remains our greatest competitive advantage enabling us to push the envelope on product innovation to connect even more intensely with consumers and providing stellar returns to our shareholders.

“Among many noteworthy brand performances, two significant milestones included The North Face brand passing $2 billion in global revenues and the Vans brand surpassing the $1.7 billion revenue mark, becoming VF’s second largest brand,” Wiseman continued. “And with strong results from our direct-to-consumer and international businesses, supported by outstanding execution from our global supply chain, we’ve established excellent momentum that we expect to contribute to a strong year for VF in 2014.”

VF Corporation

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