V.F. Corp. (NYSE: VFC) reported Q2 EPS of $0.35, $0.01 better than the analyst estimate of $0.34. Revenue for the quarter came in at $2.4 billion versus the consensus estimate of $2.53 billion.

2016 Outlook Highlights

The following adjusted outlook is presented on a continuing operations basis and excludes the Contemporary Brands businesses, which has been presented as discontinued operations for fiscal years 2016 and 2015.

• Revenue is expected to increase 3 to 4 percent versus the previous outlook of a mid-single-digit percentage rate increase. Revenue for the Outdoor & Action Sports coalition is now expected to increase at a mid-single-digit percentage rate compared with previous expectations of a high single-digit percentage rate increase. Jeanswear revenue is still expected to grow at a mid-single-digit currency neutral percentage rate and expectations for Imagewear growth remains the same at a low single-digit percentage rate increase. Sportswear coalition revenue is now expected to decline at a low double-digit percentage rate versus the previous expectation of a slight decline.
• The exclusion of Contemporary Brands from continuing operations results in a reduction of gross margin by about 10 basis points in 2015. The company expects gross margin to improve by about 50 basis points to 48.7 percent, which includes about 70 basis points of headwind from changes in foreign currency.
• The exclusion of Contemporary Brands from continuing operations results in an improvement of operating margin of about 10 basis points in 2015. Operating margin is expected to reach 14.5 percent, including about 60 basis points of negative impact from changes in foreign currency.
• The exclusion of Contemporary Brands in continuing operations results in a reduction of earnings per share by $0.03 from our previous outlook for 2016. Accordingly, reported earnings per share is expected to increase 5 percent to $3.20 (up 11 percent currency neutral) compared to EPS from continuing operations of $3.04 in 2015 as presented in the financial tables below.
• Other full year assumptions include an approximate 21 percent effective tax rate versus the previous 23 percent expectation and cash flow from operations, which is unchanged at $1.3 billion.

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