VF Corp (VFC) shares edged up in Friday’s pre-market session after the apparel-and-footwear company reported Q4 adjusted earnings above analysts’ forecast despite a slight revenue miss, while its profit guidance for 2015 topped expectations despite a weaker-than-expected outlook for sales growth. VFC was up 1% at $71.72 in recent pre-market trading, in the upper half of its 52-week range between $55.14 and $76.89.
On a reported basis, Q4 net income fell to $122.1 million, or $0.28 per diluted share, from $367.7 million, or $0.82 per diluted share, a year earlier. The latest quarter’s earnings included a $396.4 million impairment charge to reduce the carrying value on the brands “7 For All Mankind.” “Ella Moss” and “Splendid.”
On an adjusted basis to exclude one-time items, the latest quarter’s earnings were $0.98 per diluted share, up from $0.82 a year earlier and matching the average estimate of analysts polled by Capital IQ.
Total revenue rose to $3.58 billion from $3.29 billion a year earlier, but slightly missed the Street’s consensus estimate of $3.59 billion. For 2015, the company said it expects revenue will increase by 3% on a reported basis, implying about $12.65 billion, short of the $13.12 billion Street estimate. It sees the revenue increase at 8% on a currency-neutral basis.
VF Corp expects 2015 adjusted EPS up by 12% from 2014’s adjusted EPS of $3.08, implying a forecast of about $3.45, above the Street’s mean estimate of $3.40.
“2015 will be another great year for VF. Our fundamentals have never been stronger and despite the strength of the U.S. dollar, which will continue to pressure our reported results, we expect meaningful growth in every region around the world,” said CEO Eric Wiseman.
