WASHINGTON (dpa-AFX) - Branded lifestyle apparel company V.F. Corp. (VFC), on Thursday reported a profit for the fourth quarter that more than quadrupled from last year. The company's results benefited from the acquisition of Timberland Co. in 2011. Adjusted earnings and revenue for the quarter topped analysts' expectations.
All VF segments achieved higher revenues in the quarter. Outdoor & Action Sports segment recorded the strongest revenue growth of 81 percent, reflecting the addition of Timberland and Smartwool brands. Global Jeanswear revenues increased 3 percent in the quarter, with growth both domestically and internationally.
Looking ahead to fiscal year 2012, VF Corp. has forecast earnings below analysts' estimates, citing a negative impact from foreign currency translation and higher pension expense.
The company's net income for the fourth quarter was $257.32 million or $2.28 per share, up from $54.22 million or $0.49 per share in the year-ago period.
The year-ago quarter results included impairment of goodwill and intangible assets of $201.74 million.
Adjusted earnings per share rose 30 percent to $2.32 from $1.78 in the year-ago period, benefited by a $0.34 accretion from the Timberland acquisition.
On average, analysts polled by Thomson Reuters expected the company to report earnings of $2.31 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter grew 37 percent to $2.91 billion from $2.13 billion in the prior-year period and topped analysts' consensus estimate of $2.89 billion.
The acquisition of Timberland Co. added $549 million to revenues. On an organic basis, revenues increased 11 percent. The company completed its $2.3 billion acquisition of Timberland in September 2011.
The company also declared a quarterly cash dividend of $0.72 per share, payable on March 19 to shareholders of record on March 9.
Looking ahead to fiscal year 2012, VF Corp. has forecast adjusted earnings per share of about $9.30 and reported earnings of about $9.10.
The company has forecast full-year revenues to increase by about 15 percent, or 17 percent in constant dollars, with Timberland accounting for about $1 billion of the growth. Excluding Timberland, revenues should rise by approximately 6 percent, or 8 percent in constant dollars.
Analysts expect the company to earn $9.53 per share for the year on revenues of $11.22 billion.
In Thursday's session, VFC is trading at $145.60, up $2.35 or 1.64 percent, on a volume of 0.78 million shares.
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