U.S. apparel giant VF Corp reports third quarter revenues rise 7 percent to $3.5 billion driven by strong growth in its Outdoor & Action Sports coalition and in the international and direct-to-consumer businesses. Operating income increased 9 percent to $633 million in the third quarter, compared with $580 million in the same period of 2013. Operating margin was 18 percent compared with 17.6 percent in the third quarter of 2013. Earnings per share increased 11 percent to $1.08 per share compared with $0.97 per share during the same period last year.
Revenues for the Outdoor & Action Sports coalition increased 11 percent in the quarter to $2.2 billion with double-digit growth in the Americas, European and Asia Pacific regions.
Vans® brand revenues were up 12 percent with continued, strong growth across all regions as well as in the brand’s wholesale and direct-to-consumer businesses. Revenues in the Americas region were up at a high single-digit rate, impacted by a shift in timing of shipments; fourth quarter revenues are expected to grow at a high-teen percentage rate. In Europe, Vans® brand revenues were up at a mid-teen percentage rate in the quarter, and by nearly 40 percent in the Asia Pacific region.
Contemporary Brands coalition revenues were down 5 percent, to $99 million, reflecting continuing challenging consumer trends in women’s contemporary apparel and premium denim.
International revenues in the third quarter grew 9 percent, or 10 percent excluding the impact of foreign currency. Revenues in Europe increased 8 percent and in the Asia Pacific region were up 18 percent, including 19 percent growth in China. Reported revenues in the Americas (non-U.S.) region were up 4 percent (up 10 percent in constant currency). International revenues were 41 percent of total VF third quarter sales in 2014 compared with 40 percent in the same period of 2013.
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