VF Corporation’s Q3 total revenue from continued operations fell one per cent. North Face brand revenue fell one per cent though European business increased more than 20 per cent. Vans revenue increased seven per cent and Timberland was down one per cent currency neutral.
Revenue for jeans wear, image wear, and sportswear fell six per cent, three per cent and 13 per cent, with Wrangler and Lee revenue dropping six per cent and Nautica decreasing 15 per cent. Gross margin was up 70 basis points to 48.4 per cent for the quarter and earnings per share were up 13 per cent compared to the previous third quarter. Operating income was down one per cent and operating margin increased 10 basis points on a reported basis. Changes in foreign currency negatively impacted reported operating margin by 40 basis points.
In its adjusted 2016 outlook VF expects total revenue to increase two per cent compared to the previous estimate of three to four per cent. Direct-to-consumer revenue is now expected to increase at a high single-digit percentage rate. Earnings per share are expected to increase three per cent compared to the previous expectation of a five per cent increase.