VF's Q2 profit down 18 percent
VF Corp. (NYSE: VFC) said its second-quarter profit declined despite strong revenue growth, as the company posted a loss from the sale of its intimate app
arel business. Earnings from continuing operations reached a record, the company said.
Net income for the quarter declined to $81.7 million, or $0.72 per share, from $99 million, or $0.88 per share, a year earlier.
Revenue climbed 12 percent to $1.52 billion from $1.35 billion, driven by higher revenues across the company's outdoor, jeanswear, sportswear and imagewear businesses. VF is parent of The North Face, JanSport, Eastpak and Eagle Creek, to name a few.
Income from continuing operations rose 18 percent to $105.8 million, or $0.93 per share, and includes a gain of $0.04 per share from the sale of trademarks and intellectual property.
For the outdoor division, VF said total revenues for the quarter grew 20 percent to $446.8 million. Domestic revenues grew 10 percent in the quarter, driven by double-digit growth in The North Face and Reef brands and continued strong growth in its Vans brand. JanSport brand revenues declined in the quarter, due primarily to a shift in the timing of product shipments into the third quarter, it said. The acquisition of the Eagle Creek brand of adventure travel gear added $10 million to revenues in the quarter.
International revenues for the outdoor division rose 48 percent, with The North Face, Vans, Kipling, Napapijri, Eastpak and Reef brands each growing in excess of 35 percent. Outdoor operating income grew 25 percent in the quarter, reflecting the strong increase in revenues.
Also, the company said it is maintaining its full-year outlook and will remain cautious regarding retail and consumer trends. VF continues to expect earnings-per-share and revenue growth of 12 percent. Based on year-earlier results, this implies earnings per share of $5.29 per share on revenue of about $6.96 billion. Third-quarter revenue is seen growing 12 percent, with earnings per share from continuing operations up 10 percent.
Additionally, VF's board declared a regular quarterly dividend of $0.55 per share.
The dividend is payable Sept. 20 to shareholders of record Sept. 10.
During the quarter, the company repurchased 2.1 million shares, bringing the total number of shares repurchased this year to 4.1 million.
K2 initiates cash tender offer
K2 Inc. (NYSE: KTO) said it has commenced a cash tender offer to purchase any and all of its outstanding 7 3/8 percent Senior Notes due 2014, and a related consent solicitation to amend the indenture pursuant to which the notes were issued. The tender offer and consent solicitation are being made in connection with the previously announced merger of K2 and Jarden Corp. (NYSE: JAH).
Unless amended, the tender offer will expire on Aug. 14, 2007. K2 has retained Lehman Brothers to act as the dealer manager for the tender offer and solicitation agent for the consent solicitation.
Among the brands under the K2 umbrella are Marmot, ExOfficio, Atlas, Tubbs, Volkl and Marker.
Oakley Q2 profit climbs 20 percent on strong sales
Second-quarter profit for Oakley (NYSE: OO) jumped 20 percent on a big sales rise in the company's optics division.
For the quarter ended June 30, net income rose to $21.5 million, or $0.31 per share, from $17.9 million, or $0.26 per share in the prior year quarter. The company said its results included transaction costs of $0.03 per share related to the company's previously announced merger agreement with Luxottica Group S.p.A. Excluding those costs, the company would have earned $0.34 per share.
Revenue rose 29 percent to $263.2 million from $203.6 million in the second quarter of 2006.
The revenue boost came largely from the company's optics division, where sales grew 31 percent. Sunglasses, prescription eyewear and goggles all posted strong results, the company said.
Because of the sales boost, Oakley raised its 2007 full-year sales guidance and now expects sales of $930 million to $960 million, an increase of 22 percent to 26 percent from 2006. It did not change its 2007 profit guidance of 95 cents per share to 98 cents per share.
GSI Commerce opens new fulfillment center
GSI Commerce (Nasdaq: GSIC) said it opened a new automated fulfillment center in Richmond, Ky. The 540,000-square-foot center is its largest facility, and can ship more than 110,000 orders per day during the peak holiday season, GSI said.
The company said the center would employ more than 500 full-time workers and another 500 on a seasonal basis. Besides standard functions like storage, packing and shipping, the center will also offer gift-wrapping, gift messaging, cell phone activation and other services, it added.
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