Clothing conglomerate VF Corporation has announced record results for the first quarter of 2006.
Income rose 12 percent to a record $128.2 million from $114.7 million before the cumulative effect of a change in accounting policy for stock compensation expense, with earnings per share rising 14% to $1.14 from $1.00.
Total revenues increased 5 percent in the current quarter, to $1,665.7 million compared with $1,582.2 million in the 2005 quarter.
"We are delighted to start the year off on such a positive note, with earnings well in excess of the initial guidance we gave in February," said Mackey McDonald, Chairman and CEO.
The company outdoor team delivered another outstanding quarter. Total revenues increased 35 percent in the quarter, driven by particularly strong global growth in The North Face, Vans and Napapijri brands and by the addition of the Reef brand, acquired in April 2005, which contributed $42 million to revenues in the quarter.
Intimate Apparel business posted difficult revenues and profit comparisons as expected, with Private Brands business continuing to be the primary driver behind the revenue decline. The company continues to anticipate more stable performance for the remainder of the year.
Imagewear coalition delivered another excellent quarter. Revenues rose 4 percent, with the gain due to a strong increase in sales of Image apparel, which includes uniforms for the industrial, public safety and service markets.
marketing@alchempro.com
