Core Viewpoint - VF Corporation is viewed as a compelling turnaround story with significant potential for growth, particularly as it recovers from a challenging period marked by an 80% drop in earnings per share [1][2]. Financial Performance - The analyst projects that VF Corporation's FY28 earnings per share (EPS) will exceed $2.00, compared to a pro-forma FY24 EPS of $0.64, excluding Supreme [2]. - The stock price could potentially reach $40 within 2-3 years, especially considering its peak of around $100 before the pandemic [2]. Debt Management - VF Corporation previously had over $6 billion in net debt, but after selling Supreme for $1.5 billion and other non-core assets, net debt is now approximately $3.3 billion [2]. - The company is expected to continue reducing debt, which will enhance profit and loss performance and provide greater operational flexibility [3]. Management Strategy - CEO Bracken Darrell is implementing a plan focused on improving efficiency and margins, rejuvenating the Vans brand, and reducing debt leverage [1]. Market Performance - As of the last check, VF Corporation shares are trading lower by 0.61% at $24.20 [3].

Core Concept - Vans celebrates the legacy of its iconic Old Skool™ skate shoe through the launch of the Premium Old Skool Music Collection, which draws inspiration from various music eras and genres [1][4] Product Details - The collection features three unique capsules: the first with bold leopard prints and original colorways from the '70s and '80s punk scene, the second inspired by the Warped Tour with classic Checkerboard and flame prints, and the last featuring vibrant colorways that reflect the underground hip hop culture [2] - The Premium Old Skool Build includes refined materials, enhanced cushioning, and improved fit, utilizing 30% biobased Sola Foam ADC insoles for comfort [3] Cultural Impact - Vans collaborates with musicians like The Paranoyds, Voice of Baceprot, Little Simz, and Hi-Tech, who embody the spirit of creativity and cultural narratives, promoting the "Off The Wall" mindset [4] Company Overview - Vans, a brand under VF Corporation, is a leading name in skateboarding and action sports footwear, with a presence in over 100 countries and more than 2,000 retail locations globally [5]

Core Viewpoint - Goldman Sachs analyst Brooke Roach maintains a Neutral rating on VF Corp (VFC) shares and raises the price target from $22 to $25, citing a strong third-quarter performance but a cautious fourth-quarter revenue forecast due to various factors [1]. Group 1: Financial Performance - VFC reported a broad-based third-quarter beat and raised its full-year 2025 free cash flow guidance [1]. - The company achieved year-over-year revenue growth for the first time in nine quarters, driven by growth across all regions and strong performances from The North Face (TNF) and Timberland [2]. - Positive year-over-year sell-through for Vans in the U.S. non-value channel during the holiday season was noted, along with solid gross margin expansion due to easier comparisons to last year's inventory reset, product cost tailwinds, and lower promotional activity [3]. Group 2: Cost Management and Strategy - Greater-than-expected savings in SG&A costs were highlighted, with management on track to achieve approximately $300 million in SG&A run-rate savings by the end of FY25 [4]. - The company is also focused on ongoing debt reduction, aiming to meet its medium-term leverage target of 2.5x or lower by FY28 [4]. - The analyst views the quarter as a significant indication of early progress with VFC's Reinvent plan and expresses optimism about the business's margin trajectory, particularly regarding SG&A [4]. Group 3: Future Outlook - The analyst is looking forward to a more detailed update on the recent performance and future strategy of each brand during the second segment of the company's Investor Day, scheduled for March 6 [5]. - VFC shares are currently trading higher by 4.65% at $26.75 [5].

Group 1 - The article emphasizes a dividend-focused value investment strategy that prioritizes capital preservation and steady income growth [1] - The investment approach involves holding high-quality value stocks that provide meaningful growth and long-term safety [1] Group 2 - The author has a beneficial long position in the shares of VFC, indicating a personal investment interest [2] - The article is presented as a personal opinion and does not constitute investment or tax advice [3]

Core Insights - V.F. Corporation (VFC) reported third-quarter fiscal 2025 results with revenues and earnings exceeding expectations, driven by brand improvements and the Reinvent program [1][2][3] Financial Performance - Adjusted earnings per share increased to 62 cents from 57 cents year over year, surpassing the Zacks Consensus Estimate of 34 cents [2] - Net revenues reached $2.83 billion, a 1.9% year-over-year improvement, exceeding the consensus estimate of $2.75 billion [3] - Gross margin expanded by 150 basis points to 56.3% due to lower product costs and fewer promotions [4] - Adjusted operating margin increased by 360 basis points to 11.4% [4] - Selling, general and administrative costs as a percentage of revenues declined by 220 basis points to 46.5% [4] Stock Performance - Following the positive results, VFC shares rose approximately 3% in pre-market trading, with a 54.4% increase over the past year compared to the industry’s 0.7% growth [5] Revenue Breakdown - Revenues in the Americas rose by 1% year over year, while EMEA revenues also increased by 1% [6] - APAC region revenues grew by 5% year over year [6] - Wholesale revenues advanced by 8%, while direct-to-consumer revenues declined by 3% [8] - Outdoor segment revenues improved by 6% to $1.85 billion, while Active segment revenues declined by 6% to $766.3 million [9] Financial Position - VFC ended the fiscal third quarter with cash and cash equivalents of $1.37 billion and long-term debt of $3.88 billion [11] - Inventories decreased by 14% year over year [11] - The company paid off a $1 billion term loan and expects to retire an additional $750 million in April 2025 [11] Future Outlook - For the fourth quarter of fiscal 2025, management anticipates a revenue decline of 4-6% year over year [13] - The company expects free cash flow to reach $440 million, an increase from the previously mentioned $425 million [14]

Core Insights - VF Corporation's shares declined despite reporting third-quarter earnings that exceeded expectations, with net income of $167.78 million or 43 cents per share, a significant improvement from a loss of $42.45 million in the same quarter last year [1][4] - The company achieved $2.83 billion in revenue, reflecting a year-over-year increase of approximately 2%, surpassing earlier projections of a slight decline [2][4] - CEO Bracken Darrell emphasized the need for improvement in sales and margins, indicating that the company aims for consistent double-digit operating margins and sustainable growth [3] Sales Performance - Sales growth was observed across all international regions, with North Face and Timberland experiencing increases of 5% and 11% respectively, while Vans sales decreased by 9% [4] - For the upcoming fourth quarter, VF Corporation anticipates a revenue decline of 4% to 6% compared to the same period last year, along with a projected adjusted operating loss of up to $30 million [3][4]

Core Insights - VF Corporation's shares increased after reporting third-quarter earnings that exceeded expectations, with sales growth across all international regions [1][4] - The company reported a net income of $167.78 million, or 43 cents per share, for the third quarter of fiscal 2025, compared to a loss of $42.45 million in the same quarter last year [1] - Revenue for the quarter was $2.83 billion, reflecting a year-over-year increase of approximately 2%, surpassing previous projections of a slight decline [2] Sales Performance - Sales growth was observed globally, with North Face and Timberland experiencing increases of 5% and 11% respectively, while Vans sales declined by 9% [4] - The stock price of VF Corporation rose about 1% on the reporting day, marking an overall increase of nearly 60% over the past 12 months [4] Future Outlook - The CEO indicated that there is still work to be done to achieve consistent double-digit operating margins and sustainable top-line growth, emphasizing ongoing transformation efforts [3] - For the fourth quarter, the company anticipates a revenue decline of 4% to 6% compared to the same period last year, with a projected adjusted operating loss of up to $30 million [3]

Financial Performance - Net revenues for Q3 FY25 were $2,833,912, a 1.9% increase from $2,780,194 in Q3 FY24[12] - Operating income for Q3 FY25 was $225,777, compared to a loss of $91,242 in Q3 FY24, marking a significant turnaround[12] - The company reported a net income of $167,780 in Q3 FY25, compared to a net loss of $42,452 in Q3 FY24[12] - Earnings per share for continuing operations was $0.43 in Q3 FY25, a recovery from a loss of $0.24 in Q3 FY24[12] - Comprehensive income for Q3 FY25 was $286,875, compared to a loss of $82,120 in Q3 FY24, showing a significant improvement[15] - Income from continuing operations for the three months ended December 2024 was $169.1 million ($0.43 per diluted share), compared to a loss of $91.7 million ($(0.24) per diluted share) in the same period of 2023[145] Assets and Liabilities - The total assets decreased to $10,554,222 in December 2024 from $12,616,474 in December 2023, reflecting a decline of approximately 16.4%[9] - Total liabilities decreased to $8,873,992 in December 2024 from $10,507,281 in December 2023, a reduction of about 15.5%[9] - Cash and equivalents increased to $1,369,376 in December 2024 from $975,937 in December 2023, representing a growth of approximately 40.3%[9] - Total cash, cash equivalents, and restricted cash at the end of December 2024 was $1,371,309,000, up from $989,322,000 at the end of December 2023[22] - Working capital increased to $1.79 billion at December 2024, up from $733.6 million in March 2024[185] Cash Flow - Cash provided by operating activities for continuing operations was $609,545,000, down from $975,171,000 in the previous year[19] - Cash provided by investing activities for continuing operations was $1,450,486,000, a turnaround from cash used of $184,498,000 in the same period last year[19] - Cash dividends paid were $105,094,000, a decrease from $268,155,000 in the previous year[19] - The company experienced a net increase in cash of $694,352,000 for the nine months ended December 2024, compared to a net increase of $173,003,000 in the same period last year[19] Impairments and Charges - The company incurred an impairment of goodwill and intangible assets amounting to $51,000 in Q3 FY25, down from $257,096 in Q3 FY24[12] - The company reported an impairment of goodwill and intangible assets of $51,000,000 for the nine months ended December 2024, down from $257,096,000 in the prior year[19] - Impairment charges of $94.0 million and $51.0 million were recorded for Supreme's goodwill and indefinite-lived trademark intangible asset, respectively, during Q1 FY25[55] Segment Performance - VF's total segment revenues for the three months ended December 2024 were $2,833.9 million, an increase from $2,780.2 million in the same period of 2023, representing a growth of 1.9%[90] - The Outdoor segment generated revenues of $1,851.1 million in Q3 FY25, up from $1,738.6 million in Q3 FY24, reflecting a growth of 6.5%[90] - The Active segment reported revenues of $766.3 million in Q3 FY25, a decrease of 6.5% compared to $819.3 million in Q3 FY24[90] Debt and Financing - Payments on long-term debt amounted to $1,000,829,000, compared to $907,926,000 in the same period last year[19] - VF's total outstanding debt averaged $5.0 billion in the nine months ended December 2024, with a weighted average interest rate of 3.3%[142] - VF's long-term debt ratings were 'BB' by S&P and 'Ba1' by Moody's as of December 2024, with a stable outlook[202] Restructuring and Cost Management - The company initiated a large-scale cost reduction program expected to deliver $300 million in annual fixed cost savings[131] - VF recorded restructuring charges of $16.4 million and $41.8 million for the three and nine months ended December 2024, respectively, totaling $150.5 million since the program's inception[130] - The total restructuring accrual at December 2024 was $55.0 million, with $53.5 million expected to be paid within the next 12 months[120] Taxation - The effective income tax rate for the nine months ended December 2024 was 16.1%, a significant decrease from 578.0% in the same period of 2023[78] - The net discrete tax benefit for the nine months ended December 2024 was $1.9 million, primarily from unrecognized tax benefits and interest[78] Shareholder Returns - VF intends to continue paying quarterly dividends, subject to Board approval[204] - As of December 2024, VF had $2.5 billion remaining for future share repurchases under its authorization[196] Discontinued Operations - VF Corporation completed the sale of the Supreme brand to EssilorLuxottica S.A. for an aggregate base purchase price of $1.500 billion, receiving net proceeds of $1.486 billion[52] - The estimated after-tax loss on the sale of Supreme was $127.5 million, included in the income (loss) from discontinued operations for the nine months ended December 2024[52] - The company completed the sale of the Supreme brand business on October 1, 2024, reallocating related interest expenses to discontinued operations[127]

Core Insights - V.F. Corporation reported revenue of $2.83 billion for the quarter ended December 2024, a decrease of 4.3% year-over-year, but exceeded the Zacks Consensus Estimate of $2.75 billion by 3.19% [1] - The company's EPS was $0.62, up from $0.57 in the same quarter last year, representing a significant surprise of 82.35% compared to the consensus estimate of $0.34 [1] Revenue Performance - Geographic Revenue: - Americas: $1.51 billion, down 5% year-over-year, exceeding the estimate of $1.46 billion [4] - Europe: $894.20 million, down 2% year-over-year, slightly below the estimate of $900.35 million [4] - Asia-Pacific: $432.90 million, down 6.2% year-over-year, below the estimate of $456.16 million [4] - Revenue by Segment: - Work: $216.46 million, down 2.6% year-over-year, exceeding the estimate of $211.78 million [4] - Outdoor: $1.85 billion, up 6.5% year-over-year, surpassing the estimate of $1.75 billion [4] - Active: $766.31 million, down 23.3% year-over-year, below the estimate of $815.67 million [4] Brand Performance - Revenue by Brand: - Dickies: $133.60 million, down 9.7% year-over-year, exceeding the estimate of $129.87 million [4] - Timberland: $527 million, up 11.4% year-over-year, surpassing the estimate of $458.51 million [4] - Vans: $607.60 million, down 9.1% year-over-year, slightly below the estimate of $612.27 million [4] - The North Face: $1.25 billion, up 5.1% year-over-year, exceeding the estimate of $1.17 billion [4] Market Performance - V.F. shares have returned +23.9% over the past month, significantly outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

Revenue Performance - Revenue for Q3'25 was $2.8 billion, up 2% year-over-year, with all regions showing growth, particularly The North Face® and Timberland[12] - VF's total revenue for Q3 2025 was $2,833.9 million, representing a 2% increase compared to $2,780.2 million in Q3 2024[33] - The North Face brand revenue increased by 5% to $1,253.3 million, while Vans brand revenue decreased by 9% to $607.6 million[33] - The Americas region generated $1,506.7 million in revenue, a 1% increase from $1,486.0 million in Q3 2024[33] - Total segment revenues for Q3 2024 were $2,833,912, representing a 2% increase from $2,780,194 in Q3 2023[41] - Outdoor segment revenue increased by 6% to $1,851,146, while Active segment revenue decreased by 6% to $766,307[41] Profitability and Earnings - Operating income was $226 million, with an operating margin of 8.0%, an increase of 1,130 basis points year-over-year[12] - Earnings per share (EPS) improved to $0.43 compared to a loss of $(0.24) in Q3'24[12] - Net income for Q3 2025 was $167.8 million, compared to a net loss of $42.5 million in the same quarter last year[36] - Earnings per share for continuing operations was $0.43, a recovery from a loss of $0.24 per share in Q3 2024[36] - The diluted earnings per share from continuing operations for the nine months ended December 2024 was $0.56, compared to a loss of $1.56 for the same period in 2023[70] Financial Guidance and Projections - The company is establishing Q4'25 guidance with expected revenue decline of 4% to 6% year-over-year[12] - Adjusted operating loss for Q4'25 is projected to be between $(30) million to $0 million[12] - Free cash flow guidance for FY'25 has been increased to $440 million, up from the previous guidance of $425 million[12] Cost Management and Savings - The company is on track to deliver $300 million in gross savings from its Reinvent program, with $55 million generated in Q3'25[16] - VF's total costs and operating expenses for Q3 2025 were $2,608.1 million, a decrease from $2,871.4 million in Q3 2024[36] - Restructuring charges related to the Reinvent transformation program are estimated to be approximately $190.0 million, with cumulative charges through Q3 of Fiscal 2025 at $150.5 million[62] Debt and Cash Flow - Net debt decreased by $1.9 billion year-over-year, with net inventories down 14%[12] - Cash provided by operating activities for continuing operations was $609,545, a decrease from $975,171 in the previous year[39] - Total liabilities decreased to $8,873,992 from $9,954,598 in March 2024, a reduction of 10.9%[38] - Cash, cash equivalents, and restricted cash at the end of the period were $1,371,309, up from $676,957 at the beginning of the year[39] Impairments and Charges - The company reported a goodwill impairment of $51 million in Q3 2025, down from $257.1 million in the previous year[36] - The company incurred an impairment of goodwill and intangible assets amounting to $51,000 for the nine months ended December 2024[44] - The company recognized a noncash impairment charge of $51.0 million related to the Dickies trademark intangible asset during the nine months ended December 2024[63] Brand and Market Insights - Vans® revenue declined by 9% year-over-year, while Timberland saw an increase of 11%[18] - The company plans to share more on its iconic brands at the upcoming Investor Day in March[12] - The North Face brand experienced a global revenue growth of 5% for the three months ended December 2024, while Vans saw a decline of 8%[81] - Direct-to-consumer (DTC) sales decreased by 3% to $1,565.6 million, while wholesale sales increased by 8% to $1,268.3 million[33] - Geographic revenue growth for the Americas was 1% for the three months ended December 2024, with a decline of 7% for the nine months[83] - Direct-to-consumer channel revenue decreased by 3% for the three months ended December 2024, with a decline of 7% for the nine months[83] User Data and Customer Base - The company reported a significant increase in user data, with a focus on expanding its customer base across various brands including Vans and Timberland[86]