VF(US:VFC) ZACKS·2024-08-01 16:10Core Viewpoint - V.F. Corporation (VFC) is expected to report declines in both revenue and earnings for the first quarter of fiscal 2025, with revenues estimated at $1.9 billion, reflecting an 11.3% decrease year over year, and an expected loss of 35 cents per share compared to a loss of 15 cents in the prior year [1] Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for V.F. Corp's quarterly revenues is $1.9 billion, indicating an 11.3% decline from the previous year's quarter [1] - The consensus estimate for earnings is a loss of 35 cents per share, which is worse than the loss of 15 cents per share reported in the same quarter last year [1] - V.F. Corp has a trailing four-quarter negative earnings surprise of 836.6%, indicating significant challenges in meeting earnings expectations [1] Group 2: Operational Challenges - The company's quarterly results are likely to be negatively impacted by a tough operating environment and poor wholesale performance, particularly in the Americas region and the Vans brand [2] - Sales for the Vans brand and the Americas region are anticipated to decline by 16.8% each year over year, with wholesale revenues expected to fall by 7.6% [2] - Management has indicated that revenues will face challenges in the current quarter, with expectations of year-over-year gross margin erosion due to excess inventory issues [2] Group 3: Strategic Initiatives - V.F. Corp's transformation program, named Reinvent, aims to enhance brand focus and improve operational performance, targeting objectives such as improving North America performance and reducing costs [3] - The company is effectively managing costs, with a projected decrease of 2.8% in selling, general, and administrative expenses for the fiscal first quarter [3] Group 4: Earnings Prediction Model - The Zacks Model does not predict an earnings beat for V.F. Corp, as it has an Earnings ESP of 0.00% and a Zacks Rank of 5 (Strong Sell) [4]