VF Q2 earnings, sales top Street; raises dividend
VF Corp. turned in a better than expected second-quarter performance fueled by a surge in online demand and growth in China.
The parent company of The North Face, Timberland, Vans and Dickies reported that its net earnings fell to $256.7 million, or $0.66 a share, in the quarter ended Sept. 26, from $649 million, or $1.63, in the year-ago period. Analysts had expected earnings per share of $0.49.
Revenues fell 18% to $2.6 billion, topping estimates of $2.5 billion, amid store closures and lower consumer demand as a result of the pandemic and related government actions.
By brand, sales fell 25% at The North Face, 24% at Timberland and 10% at Vans. But sales jumped 19% at workwear brand Dickies. Direct-to-consumer digital revenues increased 44%.
VF raised its quarterly dividend 2% to $0.49 a share.
“Our year to date results have surpassed our internal expectations across all brands, driven by digital and China, two of our key growth pillars,” said Steve Rendle, chairman, president and CEO, VF. “We are beginning to see signs of stabilization and strength across all aspects of our business, supporting our decision to raise the dividend and provide a financial outlook for the balance of the year. Although uncertainties remain, investments in our digital transformation are resulting in near-term momentum and improved capabilities to emerge in an even stronger position.”