Core Viewpoint - VF Corporation is set to release its third quarter fiscal 2026 financial results on January 28, 2026, at 6:00 a.m. ET, followed by a conference call at 8:00 a.m. ET to discuss the results [1] Group 1: Company Overview - VF Corporation is a portfolio of leading outdoor, active, and workwear brands, including The North Face, Vans, and Timberland [2] - The company is committed to providing innovative products that emphasize performance and elevated design while delivering sustainable and long-term value for employees, communities, and shareholders [2]

Core Insights - The report highlights that leading cargo companies are leveraging China's advancements in renewable energy technology and infrastructure to implement logistics carbon accounting, switch to electric trucks, and adopt multimodal transport models [1][2] Group 1: Green Logistics Initiatives - 63% of evaluated companies have adopted new energy vehicles for logistics, while 41% are experimenting with clean fuels in shipping or air transport [2] - 77% of companies are focused on improving transportation efficiency, with firms like Decathlon and Geely increasing the application and range of new energy trucks [2] - Over half of the companies are also paying attention to emissions reduction in warehousing [2] Group 2: Emission Data Disclosure - More than 90% of cargo companies disclose their logistics-related carbon emissions, with 35% of companies like VF and Inditex using ISO14083 or GLEC frameworks for more accurate carbon accounting [2] - 41% of companies collect data on logistics suppliers' activities or emissions, with firms such as Puma and Lenovo encouraging suppliers to disclose climate information [2] Group 3: Recommendations for Scaling Decarbonization Efforts - The report suggests creating a supportive external environment to help leading companies scale their decarbonization pilot projects [3] - It recommends sharing best practices from leading companies to encourage more firms to adopt similar strategies [3] - Companies are advised to establish quantifiable decarbonization targets for logistics activities and incorporate carbon intensity metrics into supplier evaluations and procurement decisions [3]

Investment Rating - The industry rating is "Buy" [5] Core Insights - In Q3 2025, the overall revenue growth of overseas sports footwear and apparel companies slightly declined compared to Q2 2025, with a mixed performance in gross margins and an increase in most companies' SG&A expenses [5][12] - Brands focusing on niche segments like running and outdoor activities, such as ANTA, ASICS, and Deckers Outdoor, maintained high revenue growth rates, with ANTA growing by 34.5%, ASICS by 20.4%, and Deckers by 8.3% [12][13] - Most overseas sports footwear and apparel companies continued to show positive revenue growth, with notable performances from Skechers [12] - Revenue growth rates varied by region, with North America, Europe, and Greater China showing different trends; Europe had the best performance in Q3 2025 [5][20] - The apparel category showed stronger resilience in sales compared to footwear in Q3 2025 [5][25] Summary by Sections Section 1: Revenue Growth and Margin Performance - In Q3 2025, the revenue growth of overseas sports footwear companies decreased slightly compared to Q2 2025, with most companies experiencing an increase in SG&A expenses [5][12] - The revenue growth rates for major brands in Q3 2025 included Adidas at 8%, Lululemon at 7.1%, and ASICS at 20.4% [13][18] Section 2: Inventory Levels - Most overseas sports footwear companies saw an increase in inventory turnover ratios in Q3 2025, but overall inventory levels remained manageable [5][12] Section 3: Revenue Guidance for Fiscal Year 2025 - Compared to 2024, many companies have lowered their revenue growth guidance for the current fiscal year, although brands like Adidas, ANTA, and Lululemon have raised their full-year guidance for 2025 [5][18] Section 4: Investment Recommendations - Despite the slight decline in revenue growth and rising inventory turnover ratios, the long-term outlook for the sports footwear industry remains positive, driven by upcoming major sporting events and a recovery in order placements [5][18]

Group 1: Stock Performance - V.F. (VFC) closed at $18.43, down 1.18% from the previous day, underperforming the S&P 500 which gained 0.46% [1] - Over the past month, V.F. shares have increased by 13.93%, outperforming the Consumer Discretionary sector's gain of 3.1% and the S&P 500's gain of 4.22% [1] Group 2: Earnings Expectations - The upcoming earnings report is expected to show EPS of $0.44, a decrease of 29.03% from the prior-year quarter, with projected net sales of $2.8 billion, down 1.21% from the year-ago period [2] - For the full year, analysts expect earnings of $0.72 per share and revenue of $9.43 billion, reflecting changes of -2.7% and -2.16% respectively from last year [3] Group 3: Analyst Estimates and Rankings - Recent changes to analyst estimates for V.F. indicate shifting business dynamics, with positive revisions suggesting analysts' confidence in the company's performance [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks V.F. at 3 (Hold), with a recent 0.39% increase in the Zacks Consensus EPS estimate [6] Group 4: Valuation Metrics - V.F. is currently trading at a Forward P/E ratio of 26.08, which is higher than the industry average of 18.33, indicating a premium valuation [7] - The company has a PEG ratio of 1.87, compared to the industry average PEG ratio of 3.08, suggesting a more favorable growth outlook relative to its valuation [8] Group 5: Industry Context - The Textile - Apparel industry, part of the Consumer Discretionary sector, holds a Zacks Industry Rank of 84, placing it in the top 35% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the competitive positioning of the industry [9]

Analyst’s Disclosure:I/we have a beneficial short 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. Nothing contained in this message is an offer or solicitation to buy or sell any security/investment, and is for informational purposes only. T ...

Core Insights - The Zacks Textile - Apparel industry is experiencing growth through enhanced omnichannel frameworks, integrating physical retail with digital platforms to improve customer engagement [1][2] - Companies are focusing on strategic brand investments, product innovation, and disciplined pricing strategies to maintain resilience amid near-term margin challenges [2] Industry Overview - The Zacks Textile - Apparel industry encompasses companies that manufacture, design, distribute, and sell apparel, footwear, and accessories for both men and women [3] - The industry includes various segments such as fashion apparel, intimate apparel, and fitness-related accessories, operating through direct-to-consumer, wholesale, and licensing channels [4] Trends Impacting the Industry - Improved store traffic and strong digital trends are prompting companies to enhance customer experiences across all channels, leading to upgrades in digital platforms and mobile applications [5] - Companies are expanding fulfillment capabilities and adopting AI technologies to optimize customer interactions and improve operational efficiency [6] - Brand-enhancing strategies, including diverse marketing efforts and product innovation, are crucial for maintaining competitiveness [7] Cost and Profitability Concerns - Companies face challenges from elevated input costs and increased selling, general, and administrative expenses, which may impact profitability [8] - Shipping disruptions and a competitive labor market further threaten profit margins [9] Industry Performance and Valuation - The Zacks Textile - Apparel industry ranks 46, placing it in the top 19% of over 243 Zacks industries, indicating positive near-term prospects [10][11] - The industry's consensus earnings estimate has improved by 1% since October 2025, reflecting a positive aggregate earnings outlook [12] - The industry has underperformed the broader Zacks Consumer Discretionary sector and the S&P 500 over the past six months, declining 6.9% compared to the sector's 2.2% drop and the S&P 500's 17.3% increase [13] - Currently, the industry trades at a forward 12-month price-to-earnings (P/E) ratio of 16.39X, lower than the S&P 500's 23.35X and the sector's 18.56X [14] Notable Companies in the Industry - **Crocs, Inc.**: Ranked 1 (Strong Buy), focusing on sustainable growth and brand relevance through product innovation and market expansion [15][16][17] - **G-III Apparel Group, Ltd.**: Ranked 2 (Buy), emphasizing brand portfolio strength and operational flexibility to drive long-term value [19][20][21] - **Ralph Lauren Corp.**: Ranked 3 (Hold), pursuing a strategy to enhance digital and omnichannel capabilities while aiming to exceed revenue and profit goals [22][23][24] - **V.F. Corp.**: Also ranked 3, implementing a transformation program to improve operational performance and brand building [25][26][27]

Core Viewpoint - The article summarizes the latest analyst ratings from Wall Street, highlighting significant upgrades, downgrades, and new coverage that could impact market sentiment and investment decisions [1][6]. Upgrades - Oppenheimer upgraded General Electric Energy (GEV) from "Hold" to "Outperform," setting a target price of $855, citing improved pricing and sales, along with enhanced factory utilization and operational efficiency [5]. - JPMorgan raised PepsiCo (PEP) from "Neutral" to "Overweight," increasing the target price from $151 to $164, due to the company's accelerated innovation and marketing spending [5]. - HSBC upgraded AbbVie (ABBV) from "Hold" to "Buy," with a target price increase from $225 to $265, noting the company's growth momentum and strong execution capabilities [5]. - Morgan Stanley raised Terex (TEX) from "Equal Weight" to "Overweight," with a target price increase from $47 to $60, as the company's performance has rebounded and its business mix has improved [5]. - Oppenheimer upgraded Dyne Therapeutics (DYN) from "Hold" to "Outperform," significantly raising the target price from $11 to $40, highlighting the stock's undervaluation compared to its competitor Avidity [5]. Downgrades - HSBC downgraded Biogen (BIIB) from "Hold" to "Reduce," with a slight target price decrease from $144 to $143, citing the poor performance of its multiple sclerosis business [5]. - Jefferies lowered Emerson Electric (EMR) from "Buy" to "Hold," maintaining a target price of $145, indicating limited short-term upside due to the company's recent performance outlook [5]. - JPMorgan downgraded Noble Energy (NE) from "Overweight" to "Neutral," raising the target price from $31 to $33, while expressing caution about upstream capital expenditures [5]. - Jefferies downgraded Rexnord (RRX) from "Buy" to "Hold," reducing the target price from $170 to $160, noting that the company's transformation plan is taking longer than expected [5]. - Jefferies lowered Vail Resorts (VLTO) from "Buy" to "Hold," with a target price decrease from $125 to $105, stating that the current stock price reflects the company's stable demand and strong returns [5]. New Coverage - Guggenheim initiated coverage on Amazon (AMZN) with a "Buy" rating and a target price of $300, suggesting that the retail sector is showing signs of improvement despite previous concerns [9]. - B. Riley initiated coverage on Roblox (RBLX) with a "Buy" rating and a target price of $125, highlighting the company's strong long-term fundamentals [13]. - Cowen initiated coverage on Sensata Technologies (IOT) with an "Outperform" rating and a target price of $55, believing the company's platform aligns well with the $45 trillion "physical operations" industry [13]. - B. Riley initiated coverage on Take-Two (TTWO) with a "Buy" rating and a target price of $300, driven by the anticipated release of Grand Theft Auto 6 in November 2026 [13]. - Canadian Imperial Bank of Commerce initiated coverage on Shark Ninja (SN) with a "Buy" rating and a target price of $135, viewing the company as a "category disruptor" [13].

Investment Rating - The investment rating for the textile, apparel, and luxury goods industry is "Positive" and maintained [9] Core Insights - The report summarizes the Q3 2025 financial performance of overseas sports brands, highlighting sales performance, profitability, and inventory status, indicating a gradual improvement in overall performance [2][4] - Revenue performance among major footwear and apparel companies shows divergence, with some brands experiencing strong growth while others face challenges [5][6] - The outlook for the industry suggests a gradual recovery in demand and inventory replenishment, particularly for brands like Adidas and On, while Nike continues to face headwinds [8][36] Revenue Performance - Revenue growth varied significantly among companies in Q3 2025, with Adidas (+12%), On (+35%), and Amer Sports (+30%) showing strong growth, while Nike and VF both reported a decline of -1% [5][19] - The overall revenue performance in Q3 2025 improved compared to Q2, despite some brands continuing to face pressure [5][6] Guidance - The visibility for the full year has improved, with brands like UA restoring full-year guidance, indicating a positive trend despite expected performance divergence [6][26] - Strong growth trends are expected to continue for On and Amer Sports, while Nike and VF are projected to see declines but with signs of improvement [6][31] Inventory - The industry is entering a phase of inventory replenishment, with moderate recovery in demand observed in the U.S. and Europe, although challenges remain in certain markets [7][36] - U.S. apparel inventory levels are in a destocking phase, with wholesale inventory ratios declining since 2023, while retail inventory levels have stabilized [7][36] Future Outlook - The industry is expected to gradually transition into a replenishment phase, with demand showing signs of recovery, particularly in the U.S. apparel sector [8][36] - Brands like Adidas are actively seeking to replenish inventory for growth, while Nike continues to destock amid ongoing challenges [8][36]

Core Insights - VF Corporation (NYSE:VFC) experienced a significant share price increase of 10.80% on Friday, closing at $16.21, driven by investor optimism regarding potential interest rate cuts in December [1][4]. Market Sentiment - The stock's performance reflected broader market optimism, particularly following comments from Federal Reserve Bank of New York President John Williams, who indicated that monetary policy would be "modestly restrictive" due to weak labor market data [2][3]. Financial Performance - VF Corporation reported strong earnings for the second quarter of fiscal year 2026, with net income rising by 264% to $189.76 million from $52.18 million year-on-year. Revenues also increased by 3.7% to $2.8 billion compared to $2.7 billion in the same period last year [4].

Core Insights - VF Corporation has completed the sale of Dickies to Bluestar Alliance for $600 million in cash, reflecting a strategic shift within the company [2] Financial Performance - Dickies reported total sales of $542.1 million for the fiscal year ending March 31, 2025, a decline of 12.3% from $618.4 million the previous year and a 35.2% drop from $837.2 million in fiscal year 2022 [6] - VF Corporation's revenue for the second quarter of fiscal year 2026, ending September 27, 2025, was $2.8 billion, representing a 2% year-over-year increase but a 1% decrease when adjusted for constant currency [6] - The North Face and Timberland brands showed positive growth, with revenues increasing by 6% and 7% respectively, while Vans experienced a 9% decline [6] Strategic Direction - The sale of Dickies and Supreme indicates VF Corporation's ongoing strategic transformation [7] - The company anticipates a revenue decline of 1%-3% for the third quarter of fiscal year 2026, with adjusted operating profit expected to be between $275 million and $305 million [7]