It’s no wonder that VF Corp. continues to focus on acquiring outdoor brands. The company’s outdoor earnings continue to surge and outperform.
The parent company of the The North Face, Vans, Jansport and Timberland reported its fourth-quarter 2011 revenue up 37 percent to $2.91 billion versus $2.13 billion a year ago. The surge includes VF’s recent Timberland acquisition, but the results still impressed with 11 percent revenue growth, excluding the addition.
VF’s Outdoor & Action Sports quarterly revenue soared 81 percent to $1.62 billion with Timberland contributing $549 million in revenue. Without Timberland, the segment jumped 19 percent.
VF’s The North Face brand grew revenue by 22 percent, with particular growth in Asia, officials said. The Vans brand grew by 24 percent, despite a warm winter, with a healthy increase from its direct-to-consumer business.
VF’s fourth-quarter net income came in at $257.3 million, or $2.28 per diluted share, versus $54.2 million, or 49 cents per diluted share, a year ago. Minus the Timberland acquisition, earnings grew by 11 percent.
For the full year 2011, VF’s revenue increased by 23 percent to $9.46 billion, or by 12 percent without Timberland. Outdoor & Action Sports revenues rose by 42 percent for 2011, or by 20 percent without Timberland. Outdoor 2011 revenue gains outperformed all of VF’s other business segments including Jeanswear, up 8 percent; Imagewear, up 13 percent; Sportswear, up 9 percent and Contemporary Brands, up 11 percent.
Looking ahead, company officials estimated 2012 revenue growth to be about 17 percent, or 8 percent excluding Timberland. VF’s Outdoor & Action Sports 2012 revenue is expected to rise between 25 and 30 percent, or at a low-teen percentage rate minus Timberland.
In conjunction with the earnings release Thursday, VF’s board of directors declared a quarterly cash dividend of 72 cents per share.
--Compiled by David Clucas