Jan 28 (Reuters) - Apparel and footwear retailer VF Corp forecast fourth-quarter revenue above analysts' estimate on Wednesday, taking its cue from strong holiday-quarter demand for its North Face and Timberland brands that drove a sales beat.
The company's upbeat showing comes even as the broader retail sector remains pressured, with many U.S. apparel makers struggling to keep costs in check amid supply-chain disruptions and navigate the uncertainty caused by shifting trade policies under President
Donald Trump.
VF Corp, which sources 85% of its products from Southeast Asia and Central and South America, has taken several steps to mitigate the impact of tariffs, including ramping up production and shipments, working with suppliers to lower costs, and taking selective price hikes.
Introduction of fresh collections boosted its sales, with revenue from the North Face and Timberland brands growing 8% each during the third quarter.
VF Corp's performance contrasts with subdued holiday-quarter sales forecast provided by apparel and footwear retailers such as Abercrombie & Fitch and Birkenstock earlier this month. Urban Outfitters also reported slower holiday sales growth compared to last year.
The Vans parent reported third-quarter revenue of $2.88 billion, compared with analysts' average estimate of $2.76 billion, according to data compiled by LSEG.
Excluding one-time items and contributions from the Dickies brand, the company posted adjusted earnings of 58 cents per share, topping the estimate of 45 cents.
The company expects fourth-quarter revenue in the range of flat to up 2%, while analysts expected a 2.6% decline.
(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Shilpi Majumdar)
