V.F. Corporation VFC reported better-than-expected second-quarter financial results on Monday.VF Corp, 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."Our results in the quarter met our expectations and reflect a sequential and broad-based improvement in year-on-year tren ...

Analyst’s Disclosure: I/we have a beneficial long position in the shares of VFC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The contents of this article, my previous articles, and my comments are for informational purposes only and may not be considered investment an ...

Financial Data and Key Metrics Changes - Q2 revenue was down 6% year-over-year, an improvement from a 10% decline in Q1 [19] - Gross margin increased by 120 basis points to 52.2% [22] - SG&A expenses decreased by 14% year-over-year, better than expectations [23] - Operating margin was 11.4%, down 60 basis points compared to last year [24] - Diluted earnings per share were $0.60, down $0.03 from fiscal '24 [24] Business Line Data and Key Metrics Changes - Vans revenue was down 11% in Q2, improving from a 21% decline in Q1 [19] - The North Face revenue decreased by 4%, consistent with prior guidance [20] - Timberland revenue improved sequentially to a decline of 3% in Q2 from a 9% decline in Q1 [17] - Dickies revenue was down 11% in Q2, an improvement from a 14% decline in Q1 [20] Market Data and Key Metrics Changes - Americas region revenue was down 9% in Q2, improving from a 13% decline in Q1 [21] - EMEA region revenue decreased by 5%, with September marking the strongest month ever for the region [21] - APAC region revenue increased by 5%, driven by strength in the North Face and China [21] Company Strategy and Development Direction - The company aims to lower its cost base, achieving $65 million in cost savings during Q2, with a target of $300 million by the end of the fiscal year [9] - Strengthening the balance sheet is a priority, with inventories down 13% and net debt reduced by almost $450 million year-over-year [10] - The company is focused on fixing the U.S. business and turning around Vans, with improvements in forecasting accuracy [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the transformation taking place at the company and the progress made in Q2 [8] - The company anticipates further sequential improvement in Q3, with revenue expected to be in the range of $2.7 billion to $2.75 billion [26] - Management noted that the wholesale business is on the right trajectory, with positive feedback from partners [34] Other Important Information - The company completed the sale of Supreme, with net proceeds of almost $1.5 billion [10] - The company plans to provide quarterly guidance moving forward, reflecting improved visibility into operations [56] Q&A Session Summary Question: What are the drivers of the business that are becoming more predictable? - Management noted improvements in forecasting accuracy across revenue, gross margins, and SG&A, particularly in the Americas [31] Question: What are the incremental investments being contemplated? - Investments will focus on product and marketing as savings from the Reinvent program are reinvested [32] Question: How is the health of the overall wholesale business? - Management feels positive about the wholesale business trajectory, especially in the Americas [34] Question: What are the expectations for free cash flow in the second half? - Management refrained from providing specific quarterly guidance but expressed confidence in overall free cash flow expectations [37] Question: What is the outlook for gross margin moving forward? - Management expects gross margin to improve in Q3 and Q4, benefiting from lower product costs and fewer reserves [49] Question: What is the current state of the North Face in North America? - Management indicated optimism about the North Face's performance, with expectations that it cannot be worse than the previous year [51] Question: What is the status of the Vans turnaround? - Management reported that wholesale is currently outperforming B2C, with positive feedback from wholesale partners [44] Question: What is the status of inventory levels? - Inventory levels are down 13%, and management expects to maintain or reduce these levels as revenue grows [78]

V.F. (VFC) reported $2.76 billion in revenue for the quarter ended September 2024, representing a year-overyear decline of 9.1%. EPS of $0.60 for the same period compares to $0.63 a year ago. The reported revenue represents a surprise of +2.06% over the Zacks Consensus Estimate of $2.7 billion. With the consensus EPS estimate being $0.41, the EPS surprise was +46.34%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

Exhibit 99 VF CORPORATION REPORTS SECOND QUARTER FISCAL 2025 RESULTS DENVER, October 28, 2024 - VF Corporation (NYSE: VFC) today reported financial results for its second quarter (Q2'FY25) ended September 28, 2024, and the Company's Board of Directors authorized a quarterly per share dividend of $0.09. Bracken Darrell, President and CEO, said: "Our results in the quarter met our expectations and reflect a sequential and broad-based improvement in year-on-year trends. At the same time, we made further progre ...

Core Viewpoint - V.F. Corporation (VFC) is expected to report declines in both revenue and earnings for the second quarter of fiscal 2025, with revenues estimated at $2.8 billion, reflecting a 7.3% decrease year-over-year, and earnings projected at 42 cents per share, indicating a 33.3% decline from the previous year [1] Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for VFC's quarterly revenues is $2.8 billion, down 7.3% from the prior-year quarter [1] - The consensus estimate for earnings is 42 cents per share, a decrease of 33.3% from the year-ago quarter [1] - V.F. Corp has experienced earnings surprises in the past, but has missed the Zacks Consensus Estimate in the trailing four quarters [1][5] Group 2: Operational Challenges - V.F. Corp is facing a tough operating environment characterized by inflationary pressures and soft performance across various regions and channels [2] - The wholesale business in the United States is particularly challenged, with major partners adopting a cautious approach to forward orders [2] - Brands like The North Face and Vans are experiencing weak sales, struggling to connect with core customer bases due to shifting consumer preferences and increased competition [3] Group 3: Brand-Specific Issues - The North Face is facing challenges in maintaining its premium positioning while appealing to a broader audience, leading to weak sales [3] - Vans is dealing with a saturated sneaker market and declining appeal among younger customers, contributing to its sales decline [3] - Elevated promotional activity and higher costs are further impacting VFC's bottom-line performance [3] Group 4: Management Insights and Future Outlook - Management anticipates a slight year-over-year increase in SG&A expenses due to holiday season spending and reinvestments, offset by cost-saving measures [4] - Sales for Vans and The North Face are expected to decline by 17.7% and 4.7%, respectively, with overall sales in the Americas projected to fall by 6.5% year-over-year [4] - The company's transformation program, Reinvent, aims to enhance brand focus and improve operating performance, with four key objectives including improving North America performance and reducing costs [4] Group 5: Valuation and Market Performance - V.F. Corp stock is trading at a premium valuation with a forward price/earnings ratio of 20.52, compared to the industry average of 12.84 [6] - Over the past three months, VFC's shares have decreased by 1.6%, while the industry has seen a growth of 9.9% [6]

A negative analyst note weighed on the stock.Shares of VF (VFC -3.60%) were getting dinged again this week as the struggling apparel company that owns Vans and North Face got a bearish analyst note.With Treasury yields rising this week, investor expectations for near-term growth also seem to be weakening -- higher yields are a sign that Federal Reserve rate cuts may not come as fast as some had expected.As of 1:02 p.m. ET on Thursday, the stock was down 15.2% for the week, according to data from S&P Global ...

Wall Street analysts expect V.F. (VFC) to post quarterly earnings of $0.44 per share in its upcoming report, which indicates a year-over-year decline of 30.2%. Revenues are expected to be $2.84 billion, down 6.5% from the year-ago quarter.The consensus EPS estimate for the quarter has been revised 0.5% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Ahead of a company's earnings d ...

Core Insights - VF Corporation's shares declined after being placed on JPMorgan's "Negative Catalyst Watch" list, indicating concerns about the company's financial outlook [1][2] - JPMorgan analysts reduced their fiscal 2025 earnings per share (EPS) estimate for VF Corporation to 65 cents, which is 35% lower than the Wall Street consensus [1] - The analysts cited an 8% year-over-year revenue decline, which is also worse than consensus forecasts [1] Group 1: Financial Performance - The EPS estimate cut reflects ongoing challenges, with a noted decline in revenue impacting the company's financial health [1][2] - VF Corporation's shares fell nearly 7% in intraday trading and have lost close to 3% of their value since the beginning of the year [2] Group 2: Market Challenges - There are "continued wholesale challenges" at The North Face, with retailers hesitant to take inventory risks due to warmer weather conditions affecting sales [2] - The analysts observed "ongoing traffic headwinds globally" across VF Corporation's brand portfolio, which is negatively impacting direct-to-consumer revenues [2] Group 3: Analyst Rating - JPMorgan maintained a "neutral" rating on VF Corporation's stock, setting a price target of $16, suggesting a potential downside of about 12% from the current intraday price of $18.25 [2]

Wall Street expects a year-over-year decline in earnings on lower revenues when V.F. (VFC) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 28. On the ...