VF Corporation FY 2012 revenues up 15 percent

VF Corporation has reported financial results for its

fourth quarter and full year ended December 29, 2012. Revenues for the fourth quarter rose 4 percent and revenues for the full year rose 15 percent. For 2013 revenues are expected to increase about 6 percent.

VF Corporation’s fourth quarter 2012 revenues rose 4 percent to a record 3 billion dollars (Rs 16,194 crores) from 2.9 billion dollars (Rs 15,654 crores) in the same period of 2011. Operating income on an adjusted basis grew 28 percent to 457 million dollars (Rs 2, 467 crores) in the fourth quarter of 2012 compared with 358 million dollars (Rs 1, 932 crores) in the same period of 2011. Net income on an adjusted basis grew by 32 percent to 344 million dollars (Rs 1, 856 crores), compared with 262 million dollars (Rs 1, 414 crores) in the fourth quarter of 2011.

Adjusted earnings per share – which excludes Timberland acquisition-related items of 0.09 dollar (Rs 4.86) per share in 2012 and 0.04 dollar (Rs 2.16) per share in 2011 – also increased 32 percent, to 3.07 dollars (Rs 165.7) from 2.32 dollars (Rs 125.2) during last year’s same period. This increase includes the negative impacts of foreign currency translation of 0.04 dollar per share and higher pension expense of 0.05 dollars (Rs 2.70) per share.

Revenues for the full year increased 15 percent to a record 10.9 billion dollars (Rs 58,840 crores) from 9.5 billion dollars (Rs 51,283 crores) in 2011. The Timberland acquisition accounted for 9 percentage points, or 907 million dollars (Rs 4,896 crores), of the revenue growth in 2012. International revenues on a constant dollar basis were up 29 percent, of which Timberland accounted for 17 percent. Direct-to-consumer revenues were up 25 percent, with Timberland accounting for 15 percentage points of the growth.

Gross margin rose by 75 basis points to a record 46.5 percent, compared with 45.8 percent in 2011. Operating income on an adjusted basis increased 17 percent to 1.5 billion dollars (Rs 8, 097 crores) in 2012. Net income on an adjusted basis rose 18 percent to 1.1 billion dollars (Rs 5,938 crores) compared to 913 million dollars (Rs 4,928 crores) in 2011.

VF Corporation is based in North Carolina. “2012 was another year of record revenues and profits for VF, with solid results across nearly every coalition, channel and geography,” said Eric Wiseman, VF Chairman and Chief Executive Officer. “Our performance is confirmation of our greatest competitive advantage – the diversity of our portfolio. It’s this strength, along with our focus on driving operational excellence into all areas of our business, that enables our brands to deliver the industry’s most innovative and meaningful products.”

For the full year 2013, sales are expected to increase by about 6 percent to 11.5 billion dollars (Rs 62,079 crores). International revenues are expected to grow by 10 percent. Adjusted earnings per share are expected to grow to 10.70 dollars (Rs 577.6), representing an 11 percent increase. In terms of the quarterly revenue comparisons in 2013, first quarter revenue growth is expected to be modest and fourth quarter revenue growth is expected to be the strongest.