V.F. Corp. (VFC) Reports In-Line Q4 EPS; Sees FY17 Revs Up Low Single-Digits, EPS Down Low Single-Digits

V.F. Corp. (NYSE: VFC) reported Q4 EPS of $0.97, in-line with the analyst estimate of $0.97. Revenue for the quarter came in at $3.3 billion versus the consensus estimate of $3.44 billion.

2017 Outlook

“The pace of change in both our industry and the broader consumer landscape is happening at an accelerated rate,” said Steve Rendle, President and Chief Executive Officer. “The proliferation of technology and innovation across all aspects of our lives has shifted consumers’ shopping behaviors and elevated their expectations when engaging with our brands. We are pivoting to become more agile and consumer centric to compete and win in this changing global marketplace.”

Key points related to VF’s full year 2017 outlook include:

• Revenue is expected to increase at a low single-digit percentage rate including about a two percentage point negative impact from changes in foreign currency. By coalition, revenue for Outdoor & Action Sports is expected to increase at a low single-digit percentage rate (up at a mid-single-digit rate currency neutral); revenue for Jeanswear is expected to approximate 2016 levels; Imagewear revenue is expected to increase at a low single-digit percentage rate; and Sportswear is expected to decline at a high single-digit percentage rate.
• International revenue is expected to grow at a low single-digit percentage rate (accelerating to a high single-digit percentage rate on a currency neutral basis). By geographic region, European revenue is expected to increase at a low single-digit percentage rate (up at a high single-digit rate on a currency neutral basis). In the Asia Pacific region, revenue is expected to increase at a mid-single-digit percentage rate (up at a high single-digit rate on a currency neutral basis). And, in the Americas (non-U.S.) region, revenue is expected to increase at a high single-digit percentage rate (up at a low-teen rate currency neutral).
• Direct-to-consumer revenue is expected to grow at a high single-digit percentage rate. Direct-to-consumer growth in 2017 includes the addition of about 50 stores and mid-single-digit comparable sales growth, including an expected increase of approximately 25 percent in e-commerce revenue.
• Gross margin is expected to be about 48.6 percent, consistent with 2016 gross margin on an adjusted basis, and includes about a 70 basis point negative impact from changes in foreign currency.
• Operating margin is expected to approximate 14 percent, including about a 70 basis point negative impact from changes in foreign currency.
• Earnings per share is expected to be down at a low single-digit percentage rate compared to 2016 adjusted EPS of $3.11 (up at a mid-single-digit percentage rate on a currency neutral basis).
• Cash flow from operations is expected to reach $1.5 billion.
• VF expects to return more than $1.6 billion to shareholders through share repurchases and dividends.
• Other full year assumptions include an effective tax rate in the low 20 percent rangeand capital expenditures of approximately $225 million.

For earnings history and earnings-related data on V.F. Corp. (VFC) click here.

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