Exhibit 99 VF Announces Record Second Quarter and Declares Dividend -- Revenues Rise 12%, with Growth across All Businesses -- EPS from Continuing Operations up 16% to $.93, Including $.04 Gain from Sale of H.I.S(R) Brand in Europe -- Maintaining 2007 Guidance of 12% Growth in Both Revenues and EPS Information Regarding VF's Second Quarter Conference Call Webcast Today at 8:30 A.M. Can Be Found at the End of This Release. GREENSBORO, N.C.--(BUSINESS WIRE)--July 19, 2007--VF Corporation (NYSE: VFC), a global leader in branded lifestyle apparel, today announced results for the second quarter and first six months of 2007 ended June 30, 2007. All per share amounts are presented on a diluted basis and, unless otherwise noted, reflect continuing operations. Revenues rose 12% to a record $1,517.4 million, compared with $1,351.3 million in the second quarter of 2006, driven by higher revenues across our Outdoor, Jeanswear, Sportswear and Imagewear businesses. Income from continuing operations in the current quarter increased 18% to a record $105.8 million, compared with $89.6 million in the prior year's quarter. Earnings per share from continuing operations rose 16%, to a record $.93 from $.80 last year and included a $.04 gain from the sale of the H.I.S(R) trademarks and related intellectual property in Europe. Reflecting the impact of our discontinued intimate apparel business, the sale of which was concluded in the second quarter, net income was $81.7 million, or $.72 per share, compared with $99.0 million, or $.88 per share in the prior year quarter. For the first half of 2007, revenues rose 14% to a record $3,191.0 million from $2,806.9 million. Income from continuing operations increased 15% to $239.9 million, compared with $207.7 million in the prior year period. Earnings per share from continuing operations rose 14% to $2.10. Net income, including the effects of discontinued operations in both periods, was $220.0 million, or $1.93 per share, compared with $227.2 million, or $2.02 per share in the prior year period. Year-to-date, the impact from discontinued operations was a net loss of $19.9 million, or $.17 per share. Considering the anticipated gain on assets yet to be sold throughout the remainder of the year, the projected impact from discontinued operations for the full year is an estimated loss of $.07 per share. "The success of our brand portfolio management strategy is evidenced by another record quarter. Our core businesses, which remain strong and healthy, and the brands we have acquired over the last several years continue to drive tremendous shareholder value. Most importantly, we continue to see substantial opportunities for growth, particularly across our lifestyle brands," said Mackey J. McDonald, Chairman and Chief Executive Officer. "Our two most recent acquisitions, the Eagle Creek(R) and Majestic(R) businesses, are performing very well, and we remain confident in our ability to successfully identify, acquire and integrate additional brands with strong growth potential." Second Quarter Business Review Outdoor Total revenues grew strongly in the quarter, up 20% to $446.8 million. Domestic revenues grew 10% in the quarter, driven by double-digit growth in The North Face(R) and Reef(R) brands and continued strong growth in our Vans(R) brand. JanSport(R) brand revenues declined in the quarter, due primarily to a shift in the timing of product shipments into the third quarter. The acquisition of the Eagle Creek(R) brand of adventure travel gear added $10 million to revenues in the quarter. International revenues rose 48%, with The North Face(R), Vans(R), Kipling(R), Napapijri(R), Eastpak(R) and Reef(R) brands each growing in excess of 35%. Outdoor operating income grew 25% in the quarter, reflecting the strong increase in revenues. Jeanswear Revenues in our Jeanswear coalition, which includes our Wrangler(R), Lee(R) and Riders(R) brands, rose 3%. The increase was driven by a 14% increase in international revenues in the quarter, led by continued strong performance of our Lee brand and rapid growth in emerging markets such as China, Russia and India. Foreign currency translation also contributed to the international revenue gain, accounting for about half of the increase. Domestic revenues were flat in the quarter, with revenues in our Lee, Mass Market and Western Specialty businesses each approximately even with prior year levels. Jeanswear operating income rose 14%, with a strong increase in operating margins resulting from restructuring actions taken in prior periods. Sportswear Total revenues of our Sportswear coalition, which includes our Nautica(R) and John Varvatos(R) brands as well as the Kipling(R) brand in North America, rose 9% in the quarter. Our Kipling(R) and John Varvatos(R) businesses each posted revenue gains in excess of 25%, and revenues of our Nautica(R) branded business grew 6%. Operating income rose 5% in the quarter, with operating margins slightly below prior year levels due to continued investments to build our women's sportswear business. Imagewear Total revenues of our Imagewear coalition rose 22% due to the February 2007 acquisition of the Majestic Athletic business, which contributed $45 million to revenues in the quarter. Imagewear operating income and margins declined in the quarter compared with the very strong results in last year's second quarter, reflecting business and product mix changes in the current quarter. Operating income and margin comparisons for the second half of the year are expected to improve substantially. Operating income, which includes a $7.5 million gain from the H.I.S(R) sale, rose 16% in the quarter. Including this gain, operating margins rose to 11.1% from 10.8%. During the quarter we concluded the share repurchase that utilized the proceeds from the sale of our Intimates business. We repurchased 2.1 million shares in the second quarter, bringing the total number of shares repurchased this year to 4.1 million. Our balance sheet continues to be in excellent shape. Our debt to total capital ratio remains low, providing us with the flexibility to continue to pursue acquisitions to further build our portfolio with higher growth lifestyle brands and enhance shareholder value. Debt as a percent of total capital was 20% at June 2007, compared with 25% at June 2006. A key growth strategy for VF is to expand our direct-to-consumer business primarily through retail store expansion. We continue to grow our retail store base, ending the quarter with 544 owned retail stores, up from 533 at the end of the first quarter. Our retail revenues grew 22% in the quarter, with strong growth in our Vans(R), Nautica(R) and The North Face(R) brand stores. Outlook We continue to expect a fifth consecutive year of record results, with healthy organic growth. We are taking a cautious outlook regarding retail and consumer trends for the second half of the year by maintaining our guidance for a 12% increase in both revenues and EPS. We're looking forward to a record third quarter, with revenues expected to rise approximately 12%, while earnings per share from continuing operations should increase 10%. Operating margins should be strong and stable in the quarter, while the tax rate will be slightly higher, reflecting credits recorded in the prior year period. We also continue to expect a very strong year of cash flow from operations of approximately $625 million. Dividend Declared The Board of Directors declared a cash dividend of $.55 per share, payable on September 20, 2007 to shareholders of record as of the close of business on September 10, 2007. Cautionary Statement on Forward-looking Statements Certain statements included in this release are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting VF and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of VF to differ materially from those expressed or implied by forward-looking statements in this release include VF's reliance on a small number of large customers; the financial strength of VF's customers; changing fashion trends and consumer demand; increasing pressure on margins; VF's ability to implement its growth strategy; VF's ability to successfully integrate and grow acquisitions; VF's ability to maintain information technology systems; stability of VF's manufacturing facilities and foreign suppliers; continued use by VF's suppliers of ethical business practices; VF's ability to accurately forecast demand for products; continuity of members of VF's management; VF's ability to protect trademarks and other intellectual property rights; maintenance by VF's licensees and distributors of the value of VF's brands; the overall level of consumer spending; general economic conditions and other factors affecting consumer confidence; fluctuations in the price, availability and quality of raw materials and contracted products; foreign currency fluctuations; and legal, regulatory, political and economic risks in international markets. More information on potential factors that could affect VF's financial results is included from time to time in VF's public reports filed with the Securities and Exchange Commission, including VF's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. About the Company VF Corporation is a leader in branded lifestyle apparel including jeanswear, outdoor products, image apparel and sportswear. Its principal brands include Wrangler(R), Lee(R), Riders(R), Rustler(R), The North Face(R), Vans(R), Reef(R), Napapijri(R), Kipling(R), Nautica(R), John Varvatos(R), JanSport(R), Eastpak(R), Eagle Creek(R), Red Kap(R)and Majestic(R). VF Corporation's press releases, annual report and other information can be accessed through the Company's home page, www.vfc.com. Webcast Information VF will hold its first quarter conference call and webcast today at 8:30 a.m. ET. Interested parties should call 1-800-811-8824 domestic, or 1-913-981-4903 international, to access the call. You may also access this call via the Internet at www.vfc.com. A replay will be available through Aug. 2, 2007, and can be accessed by dialing 1-888-203-1112 domestic, and 1-719-457-0820 international. The pass code is 1156764. A replay also can be accessed at the Company's web site at www.vfc.com. VF CORPORATION Consolidated Statements of Income (In thousands, except per share amounts) Three Months Six Months Ended June Ended June ----------------------- ----------------------- 2007 2006 2007 2006 ----------- ----------- ----------- ----------- Net Sales $1,500,431 $1,332,892 $3,154,039 $2,769,598 Royalty Income 16,962 18,421 36,973 37,337 ----------- ----------- ----------- ----------- Total Revenues 1,517,393 1,351,313 3,191,012 2,806,935 ----------- ----------- ----------- ----------- Costs and Operating Expenses Cost of goods sold 865,727 765,554 1,811,610 1,590,154 Marketing, administrative and general expenses 483,204 439,970 995,615 883,679 ----------- ----------- ----------- ----------- 1,348,931 1,205,524 2,807,225 2,473,833 ----------- ----------- ----------- ----------- Operating Income 168,462 145,789 383,787 333,102 Other Income (Expense) Interest income 2,848 1,292 5,292 2,710 Interest expense (13,101) (13,856) (27,024) (26,535) Miscellaneous, net 1,483 542 1,749 1,371 ----------- ----------- ----------- ----------- (8,770) (12,022) (19,983) (22,454) ----------- ----------- ----------- ----------- Income from Continuing Operations Before Income Taxes 159,692 133,767 363,804 310,648 Income Taxes 53,887 44,208 123,921 102,947 ----------- ----------- ----------- ----------- Income from Continuing Operations 105,805 89,559 239,883 207,701 Discontinued Operations Income from operations 171 9,473 4,437 19,516 Loss on disposal (24,314) - (24,314) - ----------- ----------- ----------- ----------- (24,143) 9,473 (19,877) 19,516 ----------- ----------- ----------- ----------- Net Income $ 81,662 $ 99,032 $ 220,006 $ 227,217 =========== =========== =========== =========== Earnings Per Common Share - Basic Income from continuing operations $ 0.96 $ 0.81 $ 2.16 $ 1.88 Discontinued operations - income from operations 0.00 0.09 0.04 0.18 Discontinued operations - loss on disposal (0.22) - (0.22) - Net income 0.74 0.90 1.98 2.06 Earnings Per Common Share - Diluted Income from continuing operations $ 0.93 $ 0.80 $ 2.10 $ 1.85 Discontinued operations - income from operations 0.00 0.08 0.04 0.17 Discontinued operations - loss on disposal (0.21) - (0.21) - Net income 0.72 0.88 1.93 2.02 Weighted Average Shares Outstanding Basic 110,504 109,854 111,199 109,867 Diluted 113,473 112,539 114,146 112,440 Cash Dividends Per Common Share $ 0.55 $ 0.55 $ 1.10 $ 0.84 NOTE: VF operates and reports using a 52/53 week fiscal year ending on the Saturday closest to December 31 of each year. Similarly, the fiscal second quarter ends on the Saturday closest to June 30. For presentation purposes herein, all references to periods ended June 2007, December 2006 and June 2006 relate to the fiscal periods ended as of June 30, 2007, December 30, 2006 and July 1, 2006, respectively. VF CORPORATION Consolidated Balance Sheets (In thousands) June December June 2007 2006 2006 ----------- ----------- ----------- ASSETS Current Assets Cash and equivalents $ 177,849 $ 343,224 $ 161,672 Accounts receivable, net 924,455 809,594 768,773 Inventories 1,217,721 958,262 1,044,444 Other current assets 198,851 205,004 244,789 Current assets of discontinued operations 17,871 261,926 314,436 ----------- ----------- ----------- Total current assets 2,536,747 2,578,010 2,534,114 Property, Plant and Equipment 1,466,736 1,455,154 1,408,471 Less accumulated depreciation 871,850 862,096 849,394 ----------- ----------- ----------- 594,886 593,058 559,077 Intangible Assets 854,381 755,693 747,839 Goodwill 1,048,348 1,030,925 990,958 Other Assets 378,660 348,862 387,746 Noncurrent Assets of Discontinued Operations - 159,145 186,835 ----------- ----------- ----------- $5,413,022 $5,465,693 $5,406,569 =========== =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Short-term borrowings $ 107,586 $ 88,467 $ 229,145 Current portion of long-term debt 97,435 68,876 36,164 Accounts payable 424,229 385,700 413,187 Accrued liabilities 438,075 392,815 419,429 Current liabilities of discontinued operations 675 78,990 82,129 ----------- ----------- ----------- Total current liabilities 1,068,000 1,014,848 1,180,054 Long-term Debt 602,229 635,359 693,359 Other Liabilities 565,613 536,728 587,080 Noncurrent Liabilities of Discontinued Operations - 13,586 24,669 Commitments and Contingencies Common Stockholders' Equity Common Stock 109,717 112,185 110,640 Additional paid-in capital 1,585,105 1,469,764 1,368,082 Accumulated other comprehensive income (loss) (58,336) (123,652) (180,782) Retained earnings 1,540,694 1,806,875 1,623,467 ----------- ----------- ----------- Total common stockholders' equity 3,177,180 3,265,172 2,921,407 ----------- ----------- ----------- $5,413,022 $5,465,693 $5,406,569 =========== =========== =========== VF CORPORATION Consolidated Statements of Cash Flows (In thousands) Six Months Ended June --------------------- 2007 2006 ---------- ---------- Operating Activities Net income $ 220,006 $ 227,217 Adjustments to reconcile net income to cash used by operating activities of continuing operations: Loss/(income) from discontinued operations 19,877 (19,516) Depreciation 46,350 43,177 Amortization of intangible assets 10,281 8,386 Other amortization 13,321 11,199 Stock-based compensation 34,227 27,204 Pension funding under/(over) expense 4,993 (52,442) Other, net (33,801) (9,552) Changes in operating assets and liabilities, net of acquisitions and dispositions: Accounts receivable (68,705) (89,138) Inventories (197,058) (136,159) Accounts payable 28,687 16,490 Accrued compensation (28,284) (51,038) Accrued income taxes 6,624 (26,035) Accrued liabilities and other 36,096 31,306 ---------- ---------- Cash provided/(used) by operating activities of continuing operations 92,614 (18,901) (Loss)/income from discontinued operations (19,877) 19,516 Adjustments to reconcile (loss)/income from discontinued operations to cash used by discontinued operations: Loss on disposal of discontinued operations 24,314 - Other, net (15,601) (20,643) ---------- ---------- Cash used by discontinued operations (11,164) (1,127) ---------- ---------- Cash provided/(used) by operating activities 81,450 (20,028) Investing Activities Capital expenditures (50,385) (55,018) Business acquisitions, net of cash acquired (178,639) (3,893) Proceeds from sale of Intimate Apparel business 348,714 - Software purchases (777) (7,196) Other, net 3,676 9,204 ---------- ---------- Cash provided/(used) by investing activities of continuing operations 122,589 (56,903) Discontinued operations, net (243) 2,875 ---------- ---------- Cash provided/(used) by investing activities 122,346 (54,028) Financing Activities Increase in short-term borrowings 18,565 88,175 Payments on long-term debt (8,531) (1,444) Purchase of Common Stock (350,000) (118,582) Cash dividends paid (122,359) (93,607) Proceeds from issuance of Common Stock, net 75,519 53,542 Tax benefits of stock option exercises 14,667 7,824 ---------- ---------- Cash used by financing activities (372,139) (64,092) Effect of Foreign Currency Rate Changes on Cash 2,968 3,263 ---------- ---------- Net Change in Cash and Equivalents (165,375) (134,885) Cash and Equivalents - Beginning of Year 343,224 296,557 ---------- ---------- Cash and Equivalents - End of Period $ 177,849 $ 161,672 ========== ========== VF CORPORATION Supplemental Financial Information Business Segment Information (In thousands) Three Months Six Months Ended June Ended June ----------------------- ----------------------- 2007 2006 2007 2006 ----------- ----------- ----------- ----------- Coalition Revenues Jeanswear $ 655,402 $ 638,170 $1,416,206 $1,341,990 Outdoor 446,745 371,047 985,498 756,692 Imagewear 229,885 188,496 443,576 382,461 Sportswear 153,651 141,210 302,091 304,231 Other 31,710 12,390 43,641 21,561 ----------- ----------- ----------- ----------- Total coalition revenues $1,517,393 $1,351,313 $3,191,012 $2,806,935 =========== =========== =========== =========== Coalition Profit Jeanswear $ 101,437 $ 88,850 $ 230,890 $ 211,873 Outdoor 52,962 42,355 136,707 92,947 Imagewear 26,052 29,107 56,506 59,158 Sportswear 18,834 17,885 28,808 38,338 Other 3,670 283 2,458 (927) ----------- ----------- ----------- ----------- Total coalition profit 202,955 178,480 455,369 401,389 Corporate and Other Expenses (33,010) (32,149) (69,833) (66,916) Interest, net (10,253) (12,564) (21,732) (23,825) ----------- ----------- ----------- ----------- Income from Continuing Operations Before Income Taxes $ 159,692 $ 133,767 $ 363,804 $ 310,648 =========== =========== =========== =========== CONTACT: VF Services, Inc. Cindy Knoebel, CFA, 212-841-7141 or 336-424-6189 VP, Financial & Corporate Communications