VF Corporation would have seen sales increase just 2.8% in the first quarter ended March 31 excluding the impact of acquired businesses and the sale of its Playwear business. Instead, the $156 million in sales generated by the addition of Vans, Napapijiri, Kipling, and Holoubek to the portfolio more than offset the $34 million lost from the Playwear business as VFC posted a 9.1% increase in sales for the period to $1.56 billion, compared to $1.43 billion in the year-ago quarter. Net income increased 18% to $122.9 million from $103.9 million, with earnings per share rising 15% to $1.07 from 93 cents per share. The acquired businesses added a dime to earnings for the quarter.
Only the Sportswear and Outdoor businesses showed organic sales increases in the period.
Outdoor division sales jumped 127% in the quarter to $282.3 million. Roughly $141 million of the business was from the Vans, Napapijiri, and Kipling additions last year. Excluding those acquisitions, the Outdoor business posted organic sales growth just north of 13% for the period. Total sales for The North Face increased 18% in the quarter and Packs sales, which includes JanSport and Eastpak, also rose in the quarter.
Vans, Napapijiri, and Kipling were said to be “performing well above plan in both sales and profits” as the division saw double-digit owned-retail comp store sales increases for both TNF and Vans in Q1.
Fall bookings for The North Face are up 27% in the U.S. and 19% in Europe. Vans posted a 40% increase in bookings and Napapijiri is up 23%. JanSport bookings were up 33% at quarter-end.
Outdoor Coalition operating profit surged 133% to $32.4 million, compared to $13.9 million in Q1 2004.
Management said that Imagewear continues to benefit from leveraging its highly efficient operating platform against higher sales. Imagewear operating profits increased 38.7% to $30.3 million, compared to $21.8 million in Q1 last year. Sales for the quarter rose 8.2% to $187.2 million from $173.0 million in the prior year period. Occupational apparel sales were flat in the quarter, but licensed sports apparel had a strong increase and the division benefited from the acquisition of Holoubek, which contributed about $15 million in sales to the group.
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