VF forecasting revenue decline in 2009
VF Corp. said today that revenue in the fourth quarter of fiscal 2008 declined 2 percent and forecasted a slight revenue decline for 2009.
The company, which owns a multitude of brands, including Vans and Reef, said it is reducing costs, which will save $100 million beginning in 2009.
For the full year of 2008, revenues are expected to rise 6 percent.
Fourth quarter earnings: The cost savings measures will lead to a $42 million charge in the fourth quarter. Including the charge, fourth quarter earnings will be $1.00 to $1.05 per share. Excluding the charge, earnings will fall 7 to 11 percent to $1.30 to $1.35 per share.
2008 earnings: Including the charge from cost reductions, earnings per share will be flat. Excluding the charge, earnings per share will rise 5 to 6%.
2009 earnings: Will be hurt in 2009 by increased pension expenses and the impact of the strengthening dollar of foreign currency exchanges. Excluding those impacts, earnings per share should exceed 10 to 11% growth.
In 2009, VF expects to generate more than $650 million in cash.