Vans parent VF Corp. posts better-than-expected Q2 earnings as business recovers from pandemic hit

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VF Corp. , owner of Vans, Timberland and the North Face brands, posted better-than-expected earnings for its fiscal second quarter Friday, and said business is picking up again after taking a hit from store closures during the pandemic. The company said it had net income of $256.7 million, or 62 cents a share, down from $649.0 million, or $1.55 a share, in the year-earlier period. Adjusted per-share earnings came to 66 cents, ahead of the 48 cents FactSet consensus. Revenue fell to $2.608 billion from $3.179 billion, also ahead of the $2.494 billion FactSet consensus. “We are beginning to see signs of stabilization and strength across all aspects of our business, supporting our decision to raise the dividend and provide a financial outlook for the balance of the year,” Chief Executive Steve Rendle said in a statement. The company is now expecting fiscal 2021 sales of at least $9.0 billion, ahead of the $8.8 billion FactSet consensus. It expects adjusted EPS of at least $1.20, ahead of the $1.11 FactSet consensus. The company declared a dividend of 49 cents a share, payable Dec. 21 to shareholders of record as of Dec. 10. Shares rose 1.6% premarket, but have fallen 22% in the year to date, while the S&P 500 has gained 8%.
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