CIT: Acquires SoCal-based One West Bank
SDSI: Sports and active lifestyle employment outlook.
MLA: Legal risk management of staging modern sports experiences in non-traditional settings.
Details on Industry Insight.
The company released third quarter earnings results this morning.
Revenue grew 6.4 percent to $2.2 billion, below the expected increase of 9 percent.
Net income from continuing operations grew 12 percent to $233.9 million.
Overall revenues up 12 percent
Operating income up 17 percent
Operating margins by nearly a full percentage point to 20.8 percent
In the fourth quarter, the Outdoor group is expected to log a mid-teen revenue gain and "healthy" increases in operating income and margins.
Vans revenue grew 11 percent
Reef revenue grew double digits
The North Face revenue grew 15 percent.
Jeanswear, sportwear and imagewear divisions posted revenue declines, while contemporary brands posted a 12 percent increase led by 7 For All Mankind and lucy.
VF CEO Eric Wiseman offered this grim assessment:
"...the month of September - particularly the second half - marked a turning point in market conditions, with a significant deepening of the global financial crisis and worsening economic conditions taking a heavy toll on consumer confidence and spending in markets around the world."
VF now expects revenue to rise 3 to 4 percent for the fourth quarter.
On the bright side, he did say VF will continue to invest in its brands.
"...We're planning higher spending in both advertising and product development in the fourth quarter, as we believe this is the right time to invest behind our brands to support their continued long-term growth."