VF posts 2nd-quarter profit gain of 27 percent

Profit rose to $104 million, or 94 cents per share, from $81.7 million, or 72 cents per share, in the corresponding period a year earlier.

Sales rose 11 percent to $1.67 billion, from $1.52 billion a year earlier.

Results in the most recent quarter include a 7-cent tax gain, and 4 cents in expenses to improve the company's cost structure. The year-ago quarter includes a 4-cent gain from the sale of a business.

Analysts polled by Thomson Financial, who typically exclude one-time items from their estimates, forecast earnings of 86 cents per share and sales of $1.67 billion.

VF said total revenue in its outdoor segment rose 17 percent, with double-digit growth domestically and abroad.

The company's contemporary collection, which includes a number of brands bought last year, added $88 million to total revenue, VF said.

Brands with strong momentum are The North Face, Vans and John Varvatos, among others, the company said.

"Our ability to deliver record revenues and earnings per share in the face of exceptionally challenging economic conditions clearly demonstrates the strength and resilience of VF's business model," said Eric Wiseman, president and chief executive.

VF also forecast fiscal 2008 earnings above Wall Street expectations, but the stock lost $3.28, or 4.7 percent, to $67 in aftermarket trading. The stock finished up 43 cents to close at $70.15 in Tuesday's regular session.