Imagewear team delivered another outstanding quarter, with revenues up 4 percent. The gain was due to higher sales of Image apparel, which includes uniforms for the industrial, public safety and service markets, while our Licensed Apparel business was about flat with prior year levels.
Intimate Apparel coalition experienced a revenue decline of 3 percent in the quarter. The revenue decline in our Department Store and Mass Market businesses was partially offset by a strong increase in Private Brands business and higher international revenues.
The company has raised its full year earnings guidance to $5.00 per share from $4.95 previously, which represents a 10 percent increase over the $4.54 reported in 2005 before the cumulative effect adjustment. Revenues are now expected to rise approx. 7 percent for the year, to nearly $7 billion.
Strong organic growth should continue in the third quarter, with revenues expected to rise approx. 8 percent. Earnings per share are anticipated to increase by about 6 percent, reflecting heavier spending in such areas as marketing, new product launches, technology and distribution to support growth. The fourth quarter should be particularly strong, with earnings per share rising about 17 percent.
The company continues to anticipate another solid year of cash flow from operations, which should approximate $600 million in 2006.
VF Corporation is a leader in branded lifestyle apparel including jeanswear, outdoor products, intimate apparel, image apparel and sportswear.
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