VF Corporation (VFC) Q3 Fiscal 2025 Earnings Preview - VF Corporation is expected to report a year-over-year decline in both revenue and earnings for Q3 fiscal 2025, with revenue estimated at $2.8 billion, a 7.2% decline from the prior-year quarter [1] - Earnings are projected at 34 cents per share, a more than 40% decline from the year-ago quarter, though the estimate has risen by a penny in the past 30 days [2] - The company has a history of earnings surprises, with a 46.3% surprise in the last reported quarter, but has missed consensus estimates by a sharp margin in the trailing four quarters [2] Key Factors Impacting VFC's Q3 Results - Challenging operating conditions, including inflationary pressures, are expected to negatively impact results [3] - Weak performance in certain regions and channels, particularly in the wholesale business in the United States, where major partners are taking a cautious approach to forward orders [3] - Direct-to-consumer (DTC) business is also underperforming, with Americas sales expected to fall 11.3% year-over-year, wholesale revenues to decline 0.7%, and DTC revenues to drop 11.5% [3] Brand Performance and Market Challenges - VF Corp's brands, including The North Face and Vans, are experiencing softness due to shifting consumer preferences, increased competition, and declining appeal among younger customers [4] - Sales at Vans and The North Face are anticipated to decline by 8.7% and 5.9%, respectively, for the quarter [4] - Elevated promotional activity and higher costs are likely to have further dented the company's bottom-line performance [5] Management Guidance and Cost Management - Management projected Q3 revenues to be between $2.7-$2.75 billion, down 1-3% year-over-year, including a negative foreign exchange impact of about 100 basis points [5] - Adjusted operating income is expected to be in the range of $170-$200 million, down from $218 million in the year-earlier quarter [5] - Selling, general, and administrative costs are anticipated to increase modestly due to the reintroduction of incentive compensation [5] Transformation Program and Valuation - VF Corp's Reinvent program aims to improve brand-building, operating performance, and cost management, with a focus on North America performance, Vans' turnaround, and strengthening the balance sheet [6] - The company's stock is trading at a premium valuation, with a forward 12-month price/earnings ratio of 31.18, higher than the industry average of 14.72 and its median of 17.13 [8] - VFC shares have surged 53.9% in the past three months, outperforming the industry's 17.1% growth [9] Other Companies with Potential Earnings Beats - lululemon athletica (LULU) is expected to report Q4 fiscal 2024 revenue of $3.6 billion, an 11.3% year-over-year increase, with earnings projected at $5.81 per share, up 9.8% from the year-earlier quarter [10][11] - Royal Caribbean Cruises (RCL) is anticipated to report Q4 2024 revenue of $3.8 billion, a 13.2% year-over-year increase, with earnings projected at $1.50 per share, up 20% from the year-earlier quarter [12][13] - Fox (FOXA) is expected to report Q3 fiscal 2025 revenue of $4.9 billion, a 15.4% year-over-year increase, with earnings projected at 64 cents per share, up 88.2% from the year-earlier quarter [14][15]

Stock Performance - VFC is trading above its 50-day SMA of $21.03 and 200-day SMA of $16.84, indicating a strong upward momentum and long-term bullish trend [1][2] - VFC shares have gained 20% in the past three months, outperforming the Zacks Textile - Apparel industry's 12.1% growth, the Consumer Discretionary sector's 5.3% growth, and the S&P 500 index's 1.2% growth [4] Reinvent Transformation Program - The Reinvent program focuses on improving North America's performance, turning around Vans, reducing costs, and strengthening the balance sheet [6] - VFC has achieved $65 million in cost savings in Q3 fiscal 2025, bringing cumulative savings to approximately $200 million, with plans to reach $300 million by the end of the fiscal year [10] - The company is reinvesting some savings into product and brand building while strengthening its balance sheet [11] Operational Improvements - VFC's Americas segment has shown sequential improvement, with early signs of recovery and brand-elevation efforts gaining traction, particularly with the Vans turnaround [12] - Operational efficiency improvements have led to a 120 bps expansion in gross profit margin for Q2 fiscal 2025, with further gross margin gains expected in Q3 due to lower product costs and fewer reserves [13] Strategic Moves - VFC's divestiture of the Supreme brand aims to refocus on core business and improve operational efficiency, enhancing financial flexibility by reducing leverage [8] Growth Outlook - VFC's focus on the Reinvent program, operational improvements, and brand strengthening efforts like Vans and The North Face present a positive growth outlook [14] - The company anticipates sequential improvement in overall business and revenue trends during Q4 fiscal 2025, with gross margin and SG&A growth rates mirroring Q3 [13]

V.F. Corporation (VFC) reached a new 52-week high of $23.49 yesterday, a significant milestone that has caught investors’ attention. The stock momentum is driven by the company’s ongoing strategic initiatives and Reinvent transformation program focused on strengthening its brands and improving operational performance. This continued rise in share price leaves investors weighing whether to buy the stock at these levels, hold their positions or book profits.In the past month, V.F. Corp.'s shares surged 19.8%, ...

The company seems as if it might be walking the walk with its rationalization efforts.Investors returned to beleaguered apparel maker VF Corp (VFC -6.96%) over the past few days. Much of this was due to the company's surprisingly robust second-quarter fiscal 2025 results and the pronouncements made by management at the company's subsequent investor day event. As a result, according to data compiled by S&P Global Market Intelligence, VF Corp stock was up by almost 24% in price week to date as of early Friday ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 28, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number: 1-5256 V. F. CORPORATION (Exact name of registrant as specified in its charter) Pennsylvania 23-1180120 (State or other ...

V.F. Corporation VFC shares are trading higher on Tuesday.The parent company of Vans and The North Face reported second-quarter revenue of $2.8 billion, beating the consensus estimate of $2.7 billion, according to Benzinga Pro. The company reported second-quarter earnings of 60 cents per share, beating analyst estimates of 37 cents per share.BMO Capital Markets analyst Simeon Siegel reiterated the Market Perform rating, with a price forecast of $14.The analyst acknowledged the initial signs of progress and ...

V.F. Corporation (VFC) reported second-quarter fiscal 2025 results, wherein the bottom and top lines beat the Zacks Consensus Estimate. Although the company's sales and earnings declined year over year, the results reflected sequential revenue improvements across its brands. Moreover, VFC is on track with its Reinvent program and expects to deliver on its cost-saving target. Quarterly results met management's expectations, reflecting a sequential and broad-based improvement year over year. Driven by the bet ...

Core Insights - VF Corporation reported better-than-expected fiscal second-quarter earnings, leading to a 25.9% increase in stock price [1] - The company is showing signs of recovery despite ongoing challenges in the apparel market [2][4] Financial Performance - Revenue for the quarter decreased by 6% to $2.76 billion, an improvement from a 10% decline in the previous quarter and above investor expectations of $2.7 billion [2] - Gross margin improved by 120 basis points to 52.2%, while inventories fell by 13% [4] - Adjusted operating margin decreased by 60 basis points to 11.4%, and adjusted earnings per share fell from $0.63 to $0.60, surpassing estimates of $0.37 [4] Brand Performance - Sales declined across all core brands: Vans, The North Face, Timberland, and Dickies, although the numbers showed improvement compared to the first quarter [3] - The sale of Supreme to EssilorLuxottica for $1.5 billion was completed, providing cash to pay down a $1 billion term loan due in December 2024 [3] Future Guidance - VF's guidance for revenue is projected between $2.7 billion and $2.75 billion, reflecting a 1%-3% decline year-over-year, which is below the consensus estimate of $2.77 billion [5] - The company expects adjusted operating income to be between $170 million and $200 million, down from $218 million in the same quarter last year [5] Market Sentiment - The positive market reaction appears to be influenced by the significant decline in VF's stock price prior to the earnings report rather than a strong business performance [6] - There is potential for further recovery if sales and profit growth turn positive [6]

Key TakeawaysVF Corporation shares surged close to 30% in early trading Tuesday after the apparel giant posted profit and sales that beat analysts' estimates. The company said its turnaround plan is working, with CEO Bracken Darrell noting it is on track to meet its full-year savings goal.Tuesday's gains sent VF shares into positive territory for the year. VF Corporation (VFC) shares skyrocketed in early trading Tuesday after the struggling apparel maker posted better-than-expected results and gave a strong ...

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