VF Corp.'s (VFC) second-quarter profit jumped 47% as revenue grew across the board.
As it posted record earnings in the quarter, the world's biggest clothing maker by revenue raised 2010 guidance to earnings of $6.10 a share on revenue growth of 5% to 6%, up 20 cents and two percentage points, respectively.
"While current indicators point to a pause in the economic recovery, strong and highly profitable brands with compelling products that speak to consumers' needs can be successful regardless of the external environment," said Chairman and Chief Executive Eric Wiseman.
The company--which makes clothes under brands such as Lee, The North Face and Jansport--has been faring well during the economic downturn. As revenue continues to improves, the company in April also boosted its investment spending in its fastest-growing brands by $35 million to $85 million, including an advertising campaign and enhancing online efforts.
VF reported a second-quarter profit of $110.8 million, or $1 a share, up from $75.5 million, or 68 cents a share, a year earlier. Revenue increased 7% to $1.59 billion.
Analysts polled by Thomson Reuters most recently estimated earnings of 77 cents and $1.56 billion in revenue.
Gross margin rose to a record 47.1% from 43.9% amid the sales gain.
Sales at outdoor and action sports products, its largest segment by revenue, rose 12% and profit increased 35%. Sales of sportswear climbed 5% and profit jumped 41%.
Shares closed at $73.96 Wednesday and were inactive premarket.
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