VF Corp. sees 1H EPS down at MSD percentage rate, revenue down low single digits
Says company's fundamentals "strong." Says that while segments of wholesale business in North America struggled in 2016, its direct-to-consumer business is "strong." Says to focus Vans, North Face, Timberland in 2017; sees collective growth rate in high single digit rate in 2017. Says will "meaningfully" invest in digital. Sees 1H17 revenue on a reported basis to decline at a low single-digit percentage rate and EPS to decline at a mid-single-digit percentage rate on a reported basis. Sees 2H revenue on a reported basis to increase at a low single-digit percentage rate, EPS up at a low single-digit percentage rate on a reported basis. Says will focus on M&A to create value, but won't take action "simply for the act of taking action." Direct-to-consumer revenue is expected to grow at a high single-digit percentage rate in 2017, including the addition of about 50 stores and mid-single-digit comparable sales growth, including an expected increase of approximately 25% in e-commerce revenue. Sees FY CapEx approx. $225M. Sees FY Vans revenue up at low double digit rate. Sees FY Timberland growth in low single digit range. Sees FY17 Jeanswear revenue in line with FY16. Says "increasingly confident" about growth opportunity of Imagewear, sees FY17 Imagewear coalition revenue up at low single digit rate. Comments taken from the Q4 earnings conference call. VF Corp is down 3.3% in pre-market trading.