(Reuters) – Apparel and footwear maker VF Corp beat third-quarter revenue and profit estimates on Wednesday, helped by efforts to revive demand and refresh the product lineup of its Vans, North Face and Timberland brands.
Shares of the company were up nearly 6% in premarket trading.
Favorable weather in the U.S. has driven demand for outdoor and active wear, especially during the holiday season.
More full-price sales and cost-cutting under its turnaround plan also helped the Timberland footwear maker grow its third-quarter adjusted operating margins by 360 basis points to 11.4%.
VF Corp has now beaten revenue and profit estimates for three successive quarters, recovering from demand headwinds and losses that had affected the company up to early 2024.
The company’s turnaround plan involves focusing on its Vans brand, cutting $300 million in costs by the end of fiscal 2025, and selling non-core businesses such as its streetwear brand Supreme.
“Although there is work to do to consistently deliver double-digit operating margins and sustainable top-line growth, we are making great strides in transforming VF into a truly differentiated, multi-brand operator,” CEO Bracken Darrell said in a statement.
For the quarter ended Dec. 28, the company’s revenue rose 2% to $2.83 billion from a year ago, beating analysts’ estimates of $2.75 billion, according to data compiled by LSEG.
On an adjusted basis, VF Corp posted profit of 62 cents per share, compared with estimates of 34 cents.
The Denver, Colorado-based apparel retailer also expects fourth-quarter revenue to fall between 4% and 6%, almost in line with expectations for a 4.96% decline.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Sahal Muhammed)
