Outdoor financials: VF's Q2 profit falls 27 percent

VF Corp. (NYSE: VFC), parent of The North Face and JanSport, said its second quarter- profit fell 27 percent, hurt by a higher pension expense and stronger dollar.
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VF Corp. (NYSE: VFC), parent of The North Face and JanSport, said its second quarter- profit fell 27 percent, hurt by a higher pension expense and stronger dollar.

Profit for the second quarter fell to $75.5 million, or $0.68 per share, from $104 million, or $0.94 per share last year.

Revenue fell 11 percent to $1.47 billion from $1.66 billion a year ago.

The outdoor and action sports coalition reported another quarter of strong results, with revenues up 2 percent on a constant currency basis and down 2 percent on a reported basis. Global revenues of The North Face and Vans brands grew 4 percent and 14 percent, respectively, in the quarter on a constant currency basis.

Revenues in our Americas businesses rose 3 percent while international revenues were up 2 percent in constant dollars, with a 32 percent increase in revenues in Asia. Total direct-to-consumer revenues for its outdoor and action sports coalition rose 19 percent in the quarter, with double-digit growth in our The North Face and Vans brands. Its direct-to-consumer revenues reached 22 percent of total Outdoor and Action Sports revenues in the quarter.

It reiterated its expectations that 2009 earnings and revenue will fall in 2009, due to the weak economy and the stronger dollar.

The company continues to expect earnings will total $4.70 to $5 per share, from $5.42 a year ago. That includes a charge of $0.70 per share from higher pension expense and the stronger dollar.

It also expects a 5 percent to 7 percent revenue decline in 2009 from prior year revenue of $7.56 billion, implying revenue of $7.03 billion to $7.18 billion.

--Compiled by Wendy Geister

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