Jul. 22--A significant sales decline across many of VF Corp.'s apparel categories during the second quarter contributed to a 27 percent decline in net income to $75.5 million, the company reported yesterday.

However, the company managed to beat by 8 cents the average 60-cent earnings forecast of analysts surveyed by Zacks Investment Research. The company posted diluted earnings of 94 cents a year ago.

VF said that 14 cents of the earnings decline was related to higher pension expenses and the effect of a stronger dollar on foreign-currency exchange rates.

The company issued the earnings report after the stock market closed yesterday. Its share price fell 59 cents to close at $60.59, but it increased more than $2 in after-hours trading.

Eric Wiseman, the chairman, chief executive and president of VF, said that "business remains undeniably tough across most categories, channels and geographies."

Three apparel categories -- imagewear, jeanswear and sportswear -- all had declines in sales of at least 16 percent during the quarter. But sales of its contemporary brands were up 2 percent.

Wiseman said that despite the sales decline, its four largest brands -- Wrangler, Lee, The North Face and Vans -- gained market share in most markets.

"While we see some signs of stabilization occurring, we remain very cautious about the outlook for consumer spending for the balance of the year," Wiseman said.

The company said it still expects its full-year revenues to be down between 5 percent and 7 percent, with about 3 percent of the decline related to foreign-currency exchange rates.

VF said that its full-year earnings will range from $4.70 to $5 a share, compared with $5.42 in 2008.

The average full-year forecast is $4.78 from analysts surveyed by Zacks.

The company has said it has a goal of reducing expenses by $100 million this year, which includes "a small number of job cuts."

"I am also pleased by how our brands and businesses have risen to these challenging times by controlling costs, reducing inventories and remaining focused on the long-term drivers of growth," Wiseman said.

VF's board of directors declared a cash dividend of 59 cents a share. The dividend is payable Sept. 18 to shareholders registered on Sept. 8.

Richard Craver can be reached at 727-7376 or at rcraver@wsjournal.com.

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