VF Earnings Call Nuggets: Revenue Guidance and Gross Margin Outlook

VF Corporation (NYSE:VFC) recently reported its second quarter earnings and discussed the following topics in its earnings conference call.

Revenue Guidance

Michael Binetti – UBS: Bob, can I just clarify quickly the comments you made on the revenue guidance just there. I think you were saying that – maybe you were saying that third quarter would be in line with the annual 6% guidance excluding the shifts, but then be lower if you include the shifts. Did I read that correctly?

Robert K. Shearer – SVP and CFO: You’re right, Michael. What we’re saying is that third quarter revenues will be in line with the 6% annual guidance. That includes the impact, obviously, of the shifts that we mentioned. So what we are saying is the third quarter otherwise would have been stronger. We said the third quarter would have been more balanced with the fourth quarter had it not been for the revenue shifts. So the 6% includes those shifts.

Michael Binetti – UBS: Then can you help us gross up the comments on The North Face cadence that you talked about to the overall outdoor coalition outlook for third and fourth quarters?

Steve Rendle – VP and Group President, Outdoor & Action Sports Americas: Mike, I am not sure I completely understand what you mean by gross up.

Michael Binetti – UBS: So it sounds like there is going to be some North Face order growth shifted into fourth quarter from third quarter. How does that fit within the guidance for the outdoor revenue growth in the back half between third quarter and fourth quarter?

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