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$VFC Form 4: On Aug.7, 2015, Laura Meagher, Vice Pres. & General Counsel, exercised 18,928 stock options and acquired the same number of shares at $18.72 per share. On the same day, Laura sold 27,355 shares at prices ranging from not less than $75.370 to not more than $75.830. Post transaction Laura now owns 24,081 shares.
$VFC will open a new distribution center in Jonestown, Pennsylvania in early 2019. $VFC is investing up to $52MM in the project and bringing more than 175 full-time jobs to the area over the next three years. $VFC will lease a 500,000-sq.ft. facility in Jonestown. The lease will begin in July 2018. $VFC expects to begin hiring in mid-2018.
For FY17, $VFC expects revenue to increase about 6% to approx $12.1Bil, vs the prior guidance of $11.85Bil. International revenue is now expected to rise about 10% compared to the previous expectation of a low single-digit growth. GAAP EPS is anticipated to be $2.73; while adjusted EPS is projected to be $3.01 vs the previous outlook of $2.96.
Apparel and footwear company $VFC posted 5% increase in net revenue to $3.5Bil in 3Q17, helped by strong international and direct-to-consumer platforms. However, net income fell to $386.1MM, or $0.97 per share, compared to $498.5MM, or $1.19 per share a year ago, due to a goodwill impairment charge. Excluding this, net income grew 6% to $1.23.
Apparel retailer $VFC has completed the acquisition of Williamson-Dickie Mfg. Co., a private workwear company, for $820MM in cash. The company expects Williamson-Dickie to contribute about $200MM of revenue and $0.02 per share of earnings this year. By 2021, the acquired firm is expected to contribute more than $1Bil of revenue.
$VFC to acquire Williamson-Dickie Mfg. Co. $VFC updated its guidance for FY17. For FY17, $VFC expects revenue to be $11.85Bil, up from the previous guidance of $11.65Bil. EPS is now expected to be $2.96, up from the previous guidance of $2.94. For 2021, the company expects revenue and EPS to exceed $15Bil and $5, respectively.
Branded lifestyle apparel, footwear and accessories company $VFC to acquire Williamson-Dickie Mfg. Co., a family-owned, private global workwear company for approx. $820MM in cash. The transaction is expected to be closed early in 4Q17. Transaction and deal-related expenses are estimated to approx. $0.04 per share.
In 2Q17, $VFC's largest and fastest growing brand Vans posted a 9% revenue growth globally, with 7% growth in Americas, 5% growth in Europe and 29% growth in Asia. From a channel perspective, direct-to-consumer increased more than 25% with 45% growth in digital business.
$VFC's international business grew 6% YoY in 2Q17, including 18% growth in China. US business, on the other hand, had a modest growth of 1%. The company's direct-to-consumer channel grew 14% in the quarter, with digital business increasing more than 35%.
$VFC reported YoY earnings growth of 115% in 2Q17 to $109.9MM, or $0.27 per share, mainly due to the higher loss from its discontinued operations in the year ago quarter. On continuing operations basis, the company's earnings fell 16% YoY. Revenue of the Greensboro apparel marketer grew 2% to $2.3Bil.
Completing a planned leadership succession, Eric Wiseman will retire as Executive Chairman of the Board and Director of $VFC effective Oct. 28, 2017. President, CEO and Director Steven Rendle will replace Wiseman as Chairman. The succession plan began with the promotion of Rendle to President and COO in June 2015, and CEO in January this year.
$VFC is not expecting any net wholesale growth in the US in the five-year plan. There will be growth but it will be choppy. There are chances for continued bankruptcies in the US market. The company believes its growth will come from direct to consumer, digital, and international wholesale over the next five years.