VF Corp records record quarterly profit
30/04/2010
Apparel group VF Corporation has announced its results for the first quarter of 2010 and emphasised how important its outdoor and sports brands, and the growing Chinese market, are to its overall business.
Revenues, at $1.7 billion, were almost level with those of the first quarter of 2009. However, net income in the current quarter increased by 62% to a record $163.5 million, compared with $100.9 million in the 2009 quarter.
“We’re off to a strong start to the year,” said chief executive, Eric Wiseman. “Our first quarter results were stronger than anticipated, marked by improving revenue trends and gross margins that were even stronger than our expectations. Actions taken in 2009 to lower our costs and reduce inventories are clearly contributing to our stronger results. We’re looking forward to accelerating top-line growth in the second quarter and delivering a record year in earnings per share. Our confidence in the momentum of such key growth engines as our outdoor and action sports businesses and our brands in China is evidenced by our plans to further increase investments this year behind very targeted marketing and brand-building initiatives in these businesses.”
The group said its outdoor and sports businesses achieved “outstanding” results in the quarter. First quarter revenues grew 10% with operating income and margins each reaching record levels for the period. For example, the global revenues of The North Face and Vans brands grew 9% and 20%, respectively.
On announcing stronger than anticipated first quarter results, VF Corp said it would commit an additional $35 million in investment spending behind its strongest brands and biggest opportunities for profitable growth, bringing the total increase in investment spending this year to approximately $85 million.
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