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]
V.F. Corp Stock Rises as Q3 Earnings & Revenues Top Estimates