VF Corporation reported 4Q17 revenues of $3.65 billion, up 20.1% year over year and slightly below the $3.67 billion consensus estimate. The company decided during the quarter to sell its Nautica business and is discontinuing operations for the brand.
Adjusted EPS from continuing operations was $1.01, just missing the $1.02 consensus estimate.
For the full year, the company’s revenue increased by 7% year over year, to $11.8 billion, which included a contribution of two percentage points to revenue growth from the acquisition of Williamson-Dickie Manufacturing Company, a family-owned maker of workwear. The purchase was made for $820 million in cash on October 20, 2017.
Management commented that results were stronger than expected and had allowed the company to reinvest about $100 million back into the business.
Revenues for the Top Five Brands, Globally
Revenue Growth by Geography
The company guided for 1Q18 EPS of $0.65, which includes a $0.02 contribution from the acquisition of Williamson-Dickie and is higher than the consensus estimate of $0.63. Excluding the Williamson-Dickie acquisition, the company expects adjusted EPS to increase by more than 20% due in part to changes in foreign currency.
The company expects 1Q18 revenue of $2.9 billion, which is lower than the consensus estimate of $2.95 billion. This includes a $200 million contribution from the Williamson-Dickie acquisition.