VF Corp posts 23.9% profit rise

US fashion group VS Corporation has seen its net income rise $300.7m (£187.8m) in the

the third quarter. VS, which owns brands such as Wrangler, 7 For All Mankind and Timberland posted a 23.9% rise in Q3.

The company officially acquired footwear and outdoor brand Timberland on September 13 for $2.3bn (£1.4bn).

Gross margins declined in the period to 45.3% of sales down from 46.4% of sales in the previous year quarter. The group said this was because the cost of goods sold rose faster than revenues, largely due to rising cotton prices.

VF Corporation, which also owns clothing brand North Face and footwear brand Vans, said that the acquisition of Timberland helped boost profits in the quarter. Timberland contributed $163.6m (£102.2m) in sales in the three month period.

Eric Wiseman, VF Corporation chairman, president and chief executive, said that VF Corporation would not rule out future acquisitions in the outdoor and action sports sector.

He said: “Our overall acquisition strategy remains unchanged, other than that we wouldn’t go out and buy a business that looks like Timberland.”