VF Corporation, the US-based owner of denim brands Wrangler and 7 For All Mankind, has posted a 23.9% rise in net income for the third quarter of 2011.
The company, which officially acquired footwear and outdoor brand Timberland on September 13 for $2.3bn (£1.4bn), said that net income rose to $300.7m (£187.8m) in the three months to September 30, 2011 up from $242.8m (£151.6m) in the same period the previous year.
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.”