GREENSBORO, United States — Apparel maker VF Corp posted better-than-expected quarterly results and raised its full-year profit forecast on Friday, boosted by thriving demand for its high-margin Vans shoes and North Face apparel.
VF Corp, which recently decided to spin off of its less profitable denim business that houses iconic brands such as Wrangler and Lee into a publicly traded company, is now banking on the growing popularity of Vans brand.
The company has been keeping its inventory channels clean and selling products at full price, while also refreshing styles to make its brands more popular among millennials and compete with Nike.
VF said revenue from the company's Vans sneaker segment rose 26 percent in the quarter.
The company raised its full-year adjusted earnings forecast to $3.65 per share from the previous expected range of $3.52 to $3.57.
The company's income from continuing operations rose to $507.1 million, or $1.26 per share, in the second quarter ended Sept. 29, from $473.8 million, or $1.19 per share, a year earlier.
Excluding certain items, VF, earned $1.43 per share, beating analysts' average estimate of $1.33, according to Refinitiv estimates.
Net revenue rose 15 percent to $3.91 billion, above the market expectation of $3.87 billion.
By Aishwarya Venugopal; editor: Arun Koyyur.