VF 3Q adj. profit tops Street; raises dividend

VF 3Q adj. profit tops Street's view; raises dividend 21 pct., announces 4-for-1 stock split

Associated Press

GREENSBORO, N.C. (AP) -- VF Corp. said Monday that its net income rose 14 percent in the third quarter, led by higher sales of its Vans products and increased overseas revenue. Its adjusted profit beat Wall Street's expectations.

The clothing company —whose brands also include North Face and Wrangler — also announced a four-for-one stock split and said that it is raising its quarterly dividend by 21 percent.

The stock climbed before the market open on Monday.

For the three months ended Sept. 28, VF earned $433.8 million, or $3.89 per share. That's up from $381.3 million, or $3.42 per share, in the 2012 third quarter.

Taking out Timberland acquisition-related costs of 2 cents per share, earnings were $3.91 per share.

Analysts, on average, expected earnings of $3.78 per share, according to FactSet.

VF' stock added $6, or 3 percent, to $210 in premarket trading.

Revenue increased 5 percent to $3.27 billion from $3.12 billion. Wall Street forecast $3.34 billion in revenue.

Sales of Vans products climbed 16 percent globally, while North Face sales increased 3 percent. Sales for the Timberland brand edged up 2 percent.

In the jeanswear unit, Wrangler sales rose 8 percent and Lee sales climbed 3 percent. Both sportswear and contemporary brands revenue rose 1 percent, while imagewear revenue was flat.

International revenue, which comprised 40 percent of total revenue, climbed 7 percent. The company reported strong growth in Europe and the Americas, which doesn't include the U.S.. Asia Pacific revenue gained 2 percent.

The company reaffirmed its forecast for 2013 adjusted earnings of $10.85 per share on revenue of about $11.5 billion.

Analysts predict full-year earnings of $10.96 per share, on revenue of $11.51 billion.

In addition, VF said that its board approved a four-for-one stock split. Shareholders of record on Dec. 10 will receive three additional shares for each share they own, payable on Dec. 20.

VF will have 440 million outstanding shares after the split occurs, up from approximately 110 million outstanding shares.

The Greensboro, N.C. company said that on a pre-split basis, its board decided to boost its quarterly dividend by 21 percent to $1.05 from 87 cents. The dividend will be paid on Dec. 20 to shareholders of record on Dec. 10.

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