VF raises guidance
Apparel and sportswear group VF Corporation has raised its guidance following a better than expected first quarter.
First quarter revenues rose to $1.75 billion from $1.73 billion in the first quarter of 2009. Net income increased 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 Eric Wiseman, chairman and chief executive officer. "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.”
Its outdoor and action sports division is expected to play an important part going forward. “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," Mr Wiseman says.
First quarter revenues for it outdoor and action sports sector grew 10%, with revenues for The North Face and Vans up 9% and 20%, respectively. However, sportswear revenues fell slightly.
The company has raising its 2010 revenue guidance to an increase of 3-4%, up from previous guidance of a 2-3% increase. Revenues for the outdoor and action sports sector are expected to rise by more than 10% this year.
