V.F. (NYSE:VFC) Issues Earnings Results

V.F. (NYSE:VFC) issued its quarterly earnings data on Wednesday. The textile maker reported ($0.27) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.22) by ($0.05), FiscalAI reports. The firm had revenue of $1.67 billion for the quarter, compared to analysts’ expectations of $1.64 billion. V.F. had a return on equity of 21.05% and a net margin of 2.65%.The firm’s revenue was down 5.2% on a year-over-year basis. During the same period last year, the company earned ($0.24) earnings per share.

Here are the key takeaways from V.F.’s conference call:

• V.F. raised its fiscal 2027 revenue outlook to growth of 2% or better, up from the prior 1%–2% forecast, after first-quarter revenue and operating performance exceeded expectations.
• The North Face and Timberland delivered growth of 4% and 3%, respectively, while V.F. cited strong demand for outerwear, footwear, Timberland’s premium boot, and emerging brand Altra.
• Vans revenue fell 9% globally, with wholesale remaining particularly weak. Management expects a similar decline in the second quarter, although it projects a substantially improved second half as new products reach wholesale partners.
• The company continued to strengthen its balance sheet, reducing net debt by $1.1 billion, or 20%, year over year; inventory declined 4% excluding Dickies and foreign exchange, while first-quarter free cash flow improved by approximately $75 million.
• CFO Paul Vogel is stepping down and COO Abhishek Dalmia will assume a combined CFO/COO role. Management characterized the transition as planned and reaffirmed its medium-term targets, including an operating-margin exit rate of at least 10% and leverage of 2.5 times or better.

V.F. Trading Down 16.5%

NYSE:VFC traded down $3.00 during midday trading on Wednesday, hitting $15.24. The stock had a trading volume of 13,359,672 shares, compared to its average volume of 7,138,855. The stock has a 50-day moving average of $16.91 and a 200 day moving average of $18.11. The company has a market capitalization of $5.98 billion, a price-to-earnings ratio of 23.85, a PEG ratio of 1.20 and a beta of 1.56. V.F. has a one year low of $11.10 and a one year high of $22.27. The company has a quick ratio of 1.21, a current ratio of 1.84 and a debt-to-equity ratio of 1.90.

V.F. Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Investors of record on Wednesday, June 10th were paid a $0.09 dividend. The ex-dividend date of this dividend was Wednesday, June 10th. This represents a $0.36 annualized dividend and a yield of 2.4%. V.F.’s dividend payout ratio is 56.25%.

Trending Headlines about V.F.

Here are the key news stories impacting V.F. this week:

• Positive Sentiment: V.F. reported quarterly revenue of $1.67 billion, above the $1.64 billion analyst consensus. Management also indicated that the first-quarter outlook improved and appointed Abhishek Dalmia as executive vice president and chief financial officer, potentially strengthening financial oversight during the turnaround. VF Names New CFO as Q1 Outlook Improves
• Neutral Sentiment: The stock had risen ahead of the earnings release as investors anticipated progress at The North Face, Timberland and Vans, along with improving margins and lower debt. That positioning increased the potential for profit-taking when the quarterly numbers failed to fully meet expectations. VF Corporation rises ahead of earnings as turnaround hopes build
• Negative Sentiment: V.F. posted a loss of $0.27 per share, missing the expected $0.22 loss and worsening from a $0.24 loss in the prior-year quarter. Revenue declined 5.2% year over year, indicating that the recovery remains uneven despite revenue exceeding the latest estimate. V.F. Reports Q1 Loss, Misses Revenue Estimates
• Negative Sentiment: The earnings miss is particularly disappointing because V.F. had recently reinstated fiscal-year guidance and was being valued on expectations of an improving turnaround. Investors may now demand clearer evidence of sustainable earnings growth, margin expansion and debt reduction.

Analyst Ratings Changes

VFC has been the topic of a number of recent research reports. Wells Fargo & Company decreased their price target on shares of V.F. from $20.00 to $18.00 and set an “equal weight” rating on the stock in a research note on Thursday, May 21st. Needham & Company LLC dropped their price objective on shares of V.F. from $25.00 to $21.00 and set a “buy” rating for the company in a research note on Wednesday. Truist Financial decreased their target price on shares of V.F. from $18.00 to $15.00 and set a “hold” rating on the stock in a research report on Thursday, May 21st. BTIG Research reaffirmed a “buy” rating on shares of V.F. in a report on Friday, July 24th. Finally, Wall Street Zen lowered V.F. from a “buy” rating to a “hold” rating in a research report on Sunday, July 12th. Two investment analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, twelve have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, V.F. presently has a consensus rating of “Hold” and a consensus price target of $18.58.

Insiders Place Their Bets

In other news, Director Richard Carucci bought 30,000 shares of the stock in a transaction on Tuesday, June 9th. The stock was acquired at an average cost of $17.17 per share, for a total transaction of $515,100.00. Following the acquisition, the director owned 336,043 shares of the company’s stock, valued at $5,769,858.31. This represents a 9.80% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 1.54% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On V.F.

Several institutional investors have recently made changes to their positions in VFC. Captrust Financial Advisors raised its holdings in shares of V.F. by 28.0% in the fourth quarter. Captrust Financial Advisors now owns 90,873 shares of the textile maker’s stock valued at $1,643,000 after acquiring an additional 19,880 shares in the last quarter. New York State Common Retirement Fund grew its holdings in V.F. by 0.8% during the 4th quarter. New York State Common Retirement Fund now owns 540,861 shares of the textile maker’s stock worth $9,779,000 after acquiring an additional 4,249 shares in the last quarter. Finally, Russell Investments Group Ltd. increased its position in V.F. by 1.9% during the 3rd quarter. Russell Investments Group Ltd. now owns 578,767 shares of the textile maker’s stock valued at $8,352,000 after purchasing an additional 10,881 shares during the period. Hedge funds and other institutional investors own 86.84% of the company’s stock.

V.F. Company Profile

VF Corporation, commonly branded as VF, is a global apparel and footwear company that develops, markets and distributes a diverse portfolio of consumer brands. Its offerings span outdoor and action sports apparel, footwear and accessories under marquee names such as The North Face, Vans, Timberland, Dickies, JanSport and Smartwool. Through a “house of brands” strategy, VF leverages the unique heritage and design expertise of each label to serve distinct lifestyle and performance segments.

Founded in 1899 in Pennsylvania as the Reading Glove and Mitten Manufacturing Company, VF evolved through a series of acquisitions and strategic expansions to become a leading player in the global apparel industry.