VF Corporation said, second quarter revenue increased 5 percent or 7 percent in constant dollars to 3.4 billion dollars, while on an adjusted basis, revenue increased 6 percent or 8 percent in constant dollars, driven by VF’s two largest brands, and international and direct-to-consumer platforms. Earnings per share were 1.61 dollars on a reported basis, while on an adjusted basis, earnings per share increased 6 percent or 8 percent in constant dollars to 1.26 dollars.

“We’re pleased with the strength of our second quarter and first half results, driven by our two largest brands and our international and direct-to-consumer platforms,” said Steve Rendle, Chairman, VF’s President and Chief Executive Officer in a statement, adding, “Despite an increasingly uncertain geopolitical and macroeconomic environment, we are confident in the trajectory of our business as we move into the second half of our fiscal year, as reaffirmed by our outlook.”

VF reaffirms full year outlook VF’s gross margin for the quarter increased 90 basis points to 52.9 percent, and on an adjusted basis, gross margin increased 90 basis points to 53.1 percent. Operating income on a reported basis was 579 million dollars, while on an adjusted basis, operating income increased 7 percent or 10 percent in constant dollars to 606 million dollars. Operating margin on a reported basis increased 20 basis points to 17.1 percent and adjusted operating margin increased 40 basis points to 17.9 percent.

VF added that for full year fiscal 2020, revenue is still expected to approximate 11.8 billion dollars, reflecting an increase of approximately 6 percent or 8 percent on a constant dollar basis excluding the impact of acquisitions and divestitures.

By segment, revenue for Outdoor is still expected to increase approximately 5 percent or 6 percent to 7 percent on a constant dollar basis, compared to the previous expectation of an increase in revenue of approximately 5 percent or 6 percent on a constant dollar basis. Revenue for Active is now expected to increase approximately 8 percent to 9 percent or 11 percent to 12 percent on a constant dollar basis, compared to the previous expectation of an increase in revenue of approximately 7 percent to 8 percent or 10 percent to 11 percent on a constant dollar basis. Revenue for Work is now expected to increase approximately 2 percent to 3 percent or 4 percent to 5 percent on a constant dollar basis, compared to the previous expectation of an increase in revenue of approximately 3 percent to 5 percent or 4 percent to 6 percent on a constant dollar basis.

TImberland parent company sees international revenue growth

International revenue is now expected to increase approximately 4 percent to 5 percent, or approximately 8 percent to 9 percent on a constant dollar basis, excluding the impact of acquisitions and divestitures. This compares to the previous expectation of an increase in revenue of approximately 4 percent to 6 percent or 7 percent to 9 percent on a constant dollar basis. Direct-to-consumer revenue is now expected to increase approximately 11 percent to 12 percent or 12 percent to 13 percent on a constant dollar basis, including about 25 percent growth in digital. This compares to the previous expectation of an increase in revenue of approximately 10 percent to 12 percent or 11 percent to 13 percent on a constant dollar basis.

Adjusted earnings per share are still expected to be in the range of 3.32 dollars to 3.37 dollars, reflecting growth of approximately 16 percent to 18 percent or 19 percent to 21 percent on a constant dollar basis, excluding acquisitions and divestitures.

VF’s board of directors declared a quarterly dividend of 48 cents per share, a 12 percent increase over the previous quarter’s dividend, payable on December 20, 2019, to shareholders of record on December 10, 2019.

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