NEW YORK—Shares of clothing companies moved higher on Monday after VF Corp. reported that its third-quarter net income climbed 24 percent on higher prices and sales, and raised its full-year outlook and quarterly dividend.
The clothing and footwear company said profit growth came from its acquisition of boot and shoe maker Timberland and strong sales across most of its categories. VF has raised prices to offset higher costs for cotton and other raw materials, which are affecting clothing makers broadly.
Results topped expectations of analysts polled by FactSet.
VF's stock gained $4.70, or 3.5 percent, to $137.39 in afternoon trading. The shares hit a fresh 52-week high of $139.64 earlier in the session.
VF's brands include JanSport backpacks; Wrangler, Lee and Seven for all Mankind jeans; ella moss clothing and The North Face jackets and outdoor gear.
VF's good news gave a healthy bump to clothing companies that cater to teens, including Urban Outfitters Inc. Its stock climbed $1.41, or 5.6 percent, to $26.48. Elsewhere, shares of Aeropostale Inc. rose 60 cents, or 4.4 percent, to $14.30, The Buckle Inc.'s stock added $2.15, or 5.2 percent, to $43.65; and shares of American Eagle rose 41 cents, or 3.2 percent, to $13.41.