Shares of VF Corporation (NYSE:VFC) moved higher last month, after the diversified apparel-and-footwear company posted a strong third-quarter earnings report and lifted its full-year guidance. According to data from S&P Global Market Intelligence, the stock finished the month up 18%.
As the following chart shows, the stock jumped on Jan. 18 after the earnings report came out.
VFC data by YCharts
The parent of brands including Vans, Timberland, and North Face, among others, said revenue rose 8% to $3.94 billion, topping estimates at $3.87 billion. Vans continued to drive the company’s growth, as sales of the skateboarding brands rose 25%, while North Face saw sales rose 14%.
Image source: Vans.
Operating income was up 22% as the company gained leverage from the sales growth, and adjusted earnings per share were up 30% to $1.31, well ahead of expectations at $1.10.
CEO Steve Rendle said, “VF’s third-quarter results were fueled by strong growth in our largest brands and balanced growth across the core dimensions of our portfolio.” Vans has been a particularly strong growth engine for the company recently, as the brand has caught on with teenagers and has come into fashion.
VF again raised its outlook for the year, calling for revenue growth of 12%-13% for the full year to $13.8 billion, up from a previous forecast of $13.7 billion. On the bottom line, the company lifted its forecast from $3.65 to $3.73, which includes an additional incremental investment of $45 million, or $0.09 a share.
While VF trades at a premium to most retailers, it has a long track record of acquiring brands and driving growth, and after raising its outlook three times this year, the company looks set to continue delivering solid growth this year as well.