Q2 2013 Earnings Call Transcript

Transcript Call Date 07/19/2013

Operator: Good day and welcome to the VF Corporation's Second Quarter 2013 Earnings Conference Call. Today's conference is being recorded.

At this time, I would now like to turn the conference over to Lance Allega, Director of IR. You may begin.

Lance Allega - Director, IR: Thank you, operator. Hello everyone, and thank you for joining us today to discuss VF's second quarter 2013 results.

Before we begin today, I would like to remind participants that certain commentary included in today's prepared remarks and the Q&A session may constitute forward-looking statements under the definition of federal securities law. Forward-looking statements include management's current expectations, estimates and other projections about our business results of operations and the industries in which VF operates.

Actual results may differ materially from those projected in the forward-looking statements. Important factors that could cause actual results to differ materially from these projected in the forward statements are discussed in the documents filed with the SEC.

Additionally, participants on today's call may discuss non-GAAP financial measures. You'll find the appropriate reconciliations in our press release which was issued about an hour ago and on our website at

Joining us on today's call will be VF's Chairman and Chief Executive Officer, Eric Wiseman; Bob Shearer, our Chief Financial Officer; and our Group President, Scott Baxter; Steve Rendle and Karl Heinz Salzburger.

Following our prepared remarks, we'll take your questions, and ask that you limit your questions to two to allow us to get to as many of you as possible. In the event you have additional questions that are not covered by others, please re-queue and we will do our best to get back to you. Thanks for your cooperation on this.

Now, I will turn the call over to VF Chairman and CEO, Eric Wiseman. Eric?

Eric C. Wiseman - Chairman, President and CEO: Thanks, Lance. Good morning, everyone, and thank you for joining us. At our Investor Day last month where we outlined our new five-year growth plan I made the comment that we believe we are really just beginning to achieve the potential that we have to grow and deliver shareholder value. Based on today's strong results I can say with great confidence that our ability to drive growth and long-term sustainable profit is right on track. And at the half way mark of 2013 we are also right on track with our expectations for the first year of that five year plan. We are on track for 6% revenue growth to $11.5 billion; on track to deliver a significant improvement in full year gross and operating margin; on track to deliver 13% earnings per share growth consistent with our long-term target, and on track to deliver very solid cash flow generation with more than $1.4 billion expected this year.

In the second quarter, we grew revenues by 4%, $2.2 billion and we remain very comfortable holding to our full year guidance. With positive results across both our wholesale and direct-to-consumer channels and low-single digit increases in our U.S. and European businesses coupled with greater than 10% growth in both our Asia Pacific and our non-U.S. Americas region, we're pleased with our balanced performance.

Read our Earnings Call Transcript disclaimer.
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