NYSE listed and apparel marketer with more than 30 brands in its portfolio, VF Corporation reported a 20 per cent hike in adjusted earnings per share for the fourth fiscal quarter ended January 3, 2015.
Adjusted earnings per share surged 20 percent to $0.98 per share compared with $0.82 per share during the same period last year, while on a GAAP basis, earnings per share were $0.28.
VF Corp said revenues rose 9 percent to $3.6 billion driven by strong growth in its Outdoor & Action Sports segment and its international and direct-to-consumer businesses.
On a currency neutral basis, revenues expanded 11 percent over the 2013 quarter.
VF uses a 52/53 week fiscal year and the fourth quarter of 2014 included a 53rd week, which added approximately $100 million in revenue, representing about 3 percentage points of growth.
For the fourth quarter of 2014, gross margin improved 80 basis points year-on-year to a record 49 percent, driven primarily by the continuing shift of its revenue mix toward higher margin businesses.
According to VF, a $396 million pre-tax noncash impairment charge of $0.70 per share was recorded to reduce the carrying value of the goodwill and intangible assets related to its 7 For All Mankind, Ella Moss and Splendid brands.
Operating income on an adjusted basis grew 14 percent from a year ago quarter to $578 million in the fourth quarter as against $508 million in the same period of 2013.
In the reporting quarter, adjusted operating margin improved to 16.2 per cent from 15.5 per cent in the fourth quarter of 2013 and on a GAAP basis, operating margin stood at 5.1 per cent in 2014.
Inventories at the end of the fourth quarter were up 6 per cent compared with December 2013 levels.
In 2014, VF’s cash generation from operations reached nearly $1.7 billion and the company returned over $1.2 billion to shareholders through dividends and share repurchases.
“Our powerful brands and the competitive advantage combined with our relentless focus on operational excellence delivered another year of strong returns for our shareholders,” said Eric Wiseman, VF Corp CEO.
“Our four largest brands; The North Face, Vans, Timberland and Wrangler along with other brands, were strong performers as we grew our business in every region and channel around the world,” he added.
“We are very pleased to report that Vans passed the $2 billion dollar mark in 2014 to become VF’s second $2 billion brand along with The North Face,” Wiseman continued.
For 2015, the apparel marketer expects revenue to rise by 8 per cent on a currency neutral basis and up 3 per cent on a reported basis.
Revenues for the Outdoor & Action Sports coalition, including The North Face, Vans and Timberland brands, are expected to increase at a low double-digit percentage rate currency neutral and in mid single-digit on a reported basis.
Imagewear and Sportswear coalition revenues are expected to grow at a mid single-digit rate, while Jeanswear is expected to grow at a low single-digit rate. (AR)
Fibre2fashion News Desk - India