VF's Results Ease China Concerns

GREENSBORO, United States — Vans and The North Face parent company VF Corp.'s quarterly beat, aided by a sales increase in China, is fuelling a rally in branded apparel peers that include Canada Goose, where concerns of a slowdown in the region has weighed on the stock.

China sales increased 23 percent year-over-year on a constant currency basis at VF Corp. During the conference call, executives said China is a "strategic investment priority" that’s paying off. Finance chief Scott Roe said the company saw "pretty meaningful acceleration in our China business this year," which gives management confidence in its outlook for the region.

The company is monitoring China and other markets closely and maintains that the overall consumer backdrop remains solid. "As it relates to trade, the impact-to-date has been de minimis," chief executive Steve Rendle said during the call.

The retailer's shares climbed more than 15 percent, the most intraday since March 2000. Results were also helped by brands North Face and Vans, which produced quarterly sales that topped analysts' estimates. VF shares are the top performer in the S&P 1500 Textile & Apparel Index (S15TEXA), which rose 3.2 percent, the highest in more than six weeks. Other notable index gainers include Hanesbrands Inc., Carter's Inc., Ralph Lauren Corp. and PVH Corp.

Shares of Canada Goose, which had been under pressure recently amid political tensions between China and Canada, climbed as much as 5.1 percent. The Toronto-based retailer is expected to report results early next month, according to Bloomberg data.

By Janet Freund; editor: Catherine Larkin, Will Daley