GREENSBORO, United States — Vans shoe maker VF Corp raised its full year revenue and earnings forecast on Friday after soaring demand for its fashionable and high-priced sneakers helped its first-quarter results beat Wall Street estimates.
Shares of the company rose 5 percent to $93.75 in pre-market trading and were on course to open at a record high.
Sales of Vans, a favorite of skateboarders and appealing to a more fashion-centric crowd, rose 35 percent in the quarter.
Over the past few years, VF pulled back inventories and updated styles to make the brand more popular with millennials and compete with Nike.
"Vans remains on fire," Cowen analyst John Kernan said in a client note.
In stark contrast, Skechers USA Inc reported a lower-than-expected profit and gave a disappointing quarterly forecast on Thursday, sending its shares tumbling.
VF which also makes North Face apparel and Wrangler jeans raised its fiscal 2019 revenue forecast to between $13.6 billion and $13.7 billion, compared with analysts' expectations of $13.56 billion.
The Greensboro, North Carolina-based company's total revenue rose 23 percent to $2.79 billion in the quarter ended June 30, beating analysts' average estimate of $2.68 billion, according to Thomson Reuters I/B/E/S.
The company raised its full-year earnings forecast range to $3.52 to $3.57 per share from a prior expectation of $3.48 to $3.53.
Excluding certain items, VF, earned 43 cents per share, beating analysts' average estimate of 33 cents.
Net income rose to $160.4 million, or 40 cents per share, in the quarter, from $109.9 million, or 27 cents per share, a year earlier.
By Uday Sampath, additional reporting by Melissa Fares; editors: Bernard Orr and Shailesh Kuber.