Timberland sales boost parent company’s quarterly earnings
VF Corp. reports $100m boost in revenue, $13m in income
Stratham-based Timberland’s strong quarterly sales helped its parent company grow revenues by 5 percent, according to VF Corp.’s filings with the Securities and Exchange Commission.
VF reported revenues of $2.5 billion in the last quarter, about $100 million more than the same second quarter of 2014, resulting in a $171 million net profit (40 cents a share), up from $158 million during the same quarter last year.
Year-to-date, sales are up to $5.35 billion, with a net income of $450 million, or $1.60 a share. VF announced that it will pay a 32 cents quarterly dividend.
Timberland – which VF purchased in 2011 for about $2 billion – had one of the highest quarterly growth rates, said VT’s CFO in an earnings call. Timberland’s brand revenue was up 2 percent, with a 9 percent increase in wholesale business, but those numbers would be 10 percent and 17 percent, respectively, if international sales were revenue-neutral and the unfavorable exchange rate were taken into account.
VF projects that the percentage rate of Timberland’s growth will be in the low teens on a revenue-neutral basis this year.
But Timberland’s old tax returns are of some concern. The Internal Revenue Service has proposed adjustments in Timberland’s 2011 return that “would significantly impact the time of cash tax payments and interest charges,” the company said, adding that it formally disagreed with the findings.