VF Corporation reported financial results for its second quarter that ended June 28, 2014. Strong contribution from its brands such as Vans, Timberland, The North Face, Kipling and Wrangler which drove an 8 percent increased in revenues and a 16 percent increased in earnings per share in the second quarter.
Eric Wiseman, VF Chairman, President and Chief Executive Officer said, “Our strong second quarter results, led by our Outdoor & Action Sports coalition, put us right in line with our full-year outlook and long-term growth commitments. Looking toward the second half of 2014, our powerful brands and platforms have us well-positioned to continue our momentum and deliver another record year for VF and its shareholders.”
Second Quarter 2014 Review
Revenues rose 8 percent to $2.4 billion driven by double-digit growth in our Outdoor & Action Sports, international and direct-to-consumer businesses.
- Gross margin was 48.4 percent, down 10 basis points against last year’s same period. Continued benefit from the shift of our revenue mix toward higher margin businesses was offset by foreign currency impact, as anticipated, and efforts to aggressively manage inventories especially in our Jeanswear business. The company’s expectation for a 90 basis point improvement for the full year remains unchanged.
- SG&A as a percent of revenues was down 10 basis points to 39.3 percent.
- Operating income increased 9 percent to $220 million in the second quarter, compared with $201 million in the same period of 2013. Operating margin was 9.2 percent compared with 9.1 percent in the second quarter of 2013.
- Earnings per share increased 16 percent to $0.36 per share compared with $0.31 per share during the same period last year.