VF Corp. raised guidance for the first quarter two weeks ago in advance of the Q1 release, but is now also increasing its outlook for the year. The company raised its full year guidance for both revenues and earnings, now estimating that revenues will increase 6% to 7%, driven primarily by the Outdoor Coalition and continued stronger-than-anticipated revenues in the domestic Jeanswear business. Previously, VFC had anticipated an increase in EPS of approximately 6% for the year over the $4.54 reported in 2005 before the cumulative effect adjustment. VFC now expects a 9% increase to about $4.95 per share.
VF currently expects second quarter earnings per share to be about flat with the 85 cents per share reported in the second quarter of 2005. Revenues should rise by 6 to 7%. Earnings for the second quarter of 2005 were positively impacted by special items that benefited net income by $7.7 million, or 7 cents per share. The company expects a 7% to 8% percent increase in revenues and approximately 10% increase in earnings per share in the second half. The fourth quarter is expected to be particularly strong.