Out of the gate, Timberland boosts VF's bottom line



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VF Corp.'s acquisition of Stratham-based The Timberland Company earlier this year has paid off immediately and more than expected, according to the North Carolina-based firm's earnings report released Monday.VF closed the deal $2.3 billion deal on Sept. 13, and it already affected the quarter that ended Oct. 1.The footwear company added about $163.6 million in revenue to VF's $2.75 billion in earnings, boosting VF's revenue increase from 16 to 23 percent. That adds about $39.2 million in profit, minus $17.5 million in expenses -- meaning a $21 million increase in VF's profit, to $321 million.And that translates into a net increase of 7 cents, boosting VF's earnings per share to $2.69, after 18 cents-a-share in acquisition-related expenses.Calling the Timberland acquisition "highly accretive and transformational," VF CEO Eric Wiseman predicted that Timberland would add $700 million in revenue for the year and should contribute 55 cents per share to the company's annual earnings -- a dime more than predicted.Expenses for the year, however, will be roughly a quarter -- a nickel more than anticipated, so the net gain per share is expected to be about 30 cents, increasing VF annualized earnings per share to $7.90.VF has said it intends to and help grow the Timberland brand name and continue to operate it out of New Hampshire. -- BOB SANDERS/NEW HAMPSHIRE BUSINESS REVIEW Edit ModuleShow Tags