Wrangler jeans owner VF posts 62 pct 1Q profit rise, boosts outlook for the year

VF 1Q profit climbs 62 pct, boosts outlook

GREENSBORO, N.C. — VF Corp., whose clothing brands include Wrangler, The North Face and Vans, said Friday its first-quarter profit rose 62 percent, beating Wall Street expectations, and it boosted its financial guidance for the year.

CEO Eric Wiseman said the company’s actions to cut costs and inventories helped results.

Brands such as North Face, Vans, Kipling and lucy posted double-digit growth in the quarter and the jeanswear business in Europe has stabilized. Wrangler and Riders gained share in U.S. mass market stores.

The company said that it plans to commit an extra $35 million in investment spending behind big brands, making the total spending worth $85 million. Targeted brands include The North Face and Vans and opportunities in China, including expanding the Lee brand’s multimedia campaign.

Shares rose 57 cents to $87.69 a share in morning trading Friday after rising to a 52-week high of $89.23 earlier in the session.

The company earned $163.5 million, or $1.46 a share, in the three-month period ending in March. In the same period last year, the company earned $100.9 million, or 91 cents a share.

The company received a 2 cent a share benefit after taking into account a tax credit and restructuring expenses.

Revenue edged up to $1.75 billion from $1.73 billion a year ago.

Analysts surveyed by Thomson Reuters expected the company to earn $1.14 a share on revenue of $1.75 billion.

The company raised its 2010 guidance. It expects revenue to rise 3 percent to 4 percent, up from prior guidance of a rise of 2 percent to 3 percent. The new outlook means it expects revenue of between $7.35 billion and $7.43 billion.

It also expects to eVF shares climbed arn $5.90 a share this year, compared to its previous estimate of $5.60 to $5.70. The new guidance represents an increase of 14 percent over 2009 earnings per share of $5.16.

Analysts expect the company to earn $5.76 a share on revenue of $7.45 billion.