V.F. Corp. (NYSE: VFC) reported Q2 EPS of $1.43, $0.10 better than the analyst estimate of $1.33. Revenue for the quarter came in at $3.9 billion versus the consensus estimate of $3.87 billion.

• Revenue from continuing operations increased 15 percent (up 16 percent in constant dollars) to $3.9 billion; revenue from continuing operations increased 6 percent (up 7 percent in constant dollars) excluding the revenue contribution from acquisitions;
• Active segment revenue increased 19 percent (up 20 percent in constant dollars) including a 26 percent (27 percent in constant dollars) increase in Vans® brand revenue; Outdoor segment revenue increased 6 percent (up 7 percent in constant dollars) including a 5 percent (7 percent in constant dollars) increase in The North Face® brand revenue and a 5-percentage point revenue growth contribution from acquisitions;
• International revenue increased 13 percent (up 15 percent in constant dollars), including a 9-percentage point revenue growth contribution from acquisitions;
• Direct-to-consumer revenue increased 19 percent (up 20 percent in constant dollars), including a 6-percentage point revenue growth contribution from acquisitions; Digital revenue increased 48 percent (up 49 percent in constant dollars), including a 17-percentage point revenue growth contribution from acquisitions;
• Gross margin from continuing operations decreased 10 basis points to 50.1 percent; on an adjusted basis, gross margin was in line with the prior year at 50.2 percent; excluding the impact of acquisitions, on an adjusted basis, gross margin increased 70 basis points to 50.9 percent;
• Earnings per share from continuing operations was $1.26. Adjusted earnings per share from continuing operations increased 19 percent (up 21 percent in constant dollars) to $1.43, including an $0.08 contribution from acquisitions;
• Full year fiscal 2019 revenue is now expected to increase at least 11 percent to at least $13.7 billion;
• Full year fiscal 2019 adjusted earnings per share is now expected to be $3.65, reflecting an increase of 16 percent; and,
• Quarterly dividend increased by 11 percent to $0.51 per share.

“VF’s second quarter results were strong driven by our core brands, the company’s international and direct-to-consumer platforms, and our work businesses,” said Steve Rendle, Chairman, President and Chief Executive Officer. “As we move into the second half of our fiscal year, we are confident in our growth engines as evidenced by the increase in both our dividend and full year outlook. We continue to invest behind our strategic growth priorities, and the actions we are taking continue to advance our journey toward transforming VF into a purpose-led, performance-driven, consumer centric organization focused on and committed to delivering superior returns to shareholders.”

GUIDANCE:

V.F. Corp. sees FY2019 EPS of $3.65, versus the consensus of $3.65. V.F. Corp. sees FY2019 revenue of $13.7 billion, versus the consensus of $13.71 billion.

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