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V.F. Q4 adjusted EPS misses expectations, posts net loss

V.F. Corp., the parent company of The North Face and Vans, posted adjusted EPS for the fiscal fourth quarter that missed analyst expectations and suffered a net loss as it booked charges related to recent acquisitions and U.S. federal tax reform.

The company reported adjusted EPS from continuing operations of $1.01, just missing the S&P Capital IQ consensus estimate for normalized $1.02, for the fiscal fourth quarter ended Dec. 31, 2017.

During the quarter, V.F. announced the acquisition of outdoor and sportswear manufacturer Icebreaker Holdings Ltd. and completed the takeover of work-wear maker Williamson-Dickie Manufacturing Co. The company also incurred a provisional net charge of $465.5 million related to U.S. federal tax reform.

Including these costs, the company posted a net loss of $90.27 million for the fourth fiscal quarter, compared to a profit of $264.33 million reported in same quarter last year.

For the full year, the company reported adjusted EPS from continuing operations of $2.98.

The company's net income for the full fiscal year dropped to $614.92 million from $1.07 billion reported in 2016.

V.F.'s fourth-quarter revenue increased 20% to $3.65 billion from $3.04 billion in the same quarter a year ago.

V.F. Corp. has decided to change its fiscal end to the Saturday closest to March 31, compared to the Saturday closest to Dec. 31, effective March 31. For the "transitional quarter" ending March 31, V.F. expects adjusted earnings per share of about 65 cents, including the effect of the Williamson-Dickie acquisition. The company anticipates revenue of about $2.9 billion, including an approximately $200 million benefit from the Williamson-Dickie acquisition.