V.F. (NYSE:VFC) Releases Quarterly Earnings Results, Beats Expectations By $0.16 EPS

Key Points

• V.F. beat quarterly expectations: EPS was $0.70 versus the $0.54 consensus, while revenue reached $2.70 billion against estimates of $2.66 billion. Gross margin expanded nearly 300 basis points to 55.4%.
• Management reaffirmed its fiscal 2027 outlook, including at least 2% revenue growth, an approximately 8% operating margin and about $515 million or more in free cash flow. The North Face, Timberland and Altra posted growth, with 75% of the portfolio now growing.
• Vans and other risks remain concerns: Vans revenue fell nearly 10%, wholesale sales declined 6%, inventory rose 7% year over year and tariffs are expected to cost $70 million to $80 million in the second half.

V.F. (NYSE:VFC - Get Free Report) released its quarterly earnings data on Wednesday. The textile maker reported $0.70 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.54 by $0.16, FiscalAI reports. The company had revenue of $2.70 billion for the quarter, compared to the consensus estimate of $2.66 billion. During the same period last year, the company earned $0.52 EPS. V.F.'s revenue for the quarter was down 3.8% compared to the same quarter last year.

Here are the key takeaways from V.F.'s conference call:

• Second-quarter results exceeded expectations: revenue grew 1% versus guidance for flat growth, operating income reached $364 million—about $50 million ahead of guidance—and EPS rose more than 40% to $0.70. Gross margin expanded nearly 300 basis points to 55.4%.
• Management reaffirmed fiscal 2027 guidance, including revenue growth of 2% or better and operating margin of approximately 8%, while raising the expected full-year tax rate outlook to the high-20% range. It also expects approximately $515 million or more of reported free cash flow, including tariff refunds.
• The North Face and Timberland each grew 4% in the quarter, while Altra surged more than 40% across all regions and channels. Management said 75% of the portfolio is now growing, up from 43% in fiscal 2024.
• Vans declined 9.8% in the second quarter, with wholesale still affected by destocking, although global direct-to-consumer sales returned to growth for the first time in nearly five years. Management expects Vans to improve to down 4% or better in the third quarter and down 2% or better in the second half, citing firm wholesale orders and new product launches.
• Inventory increased 7% year over year as VF invested in the back half, and management acknowledged that inventory management will be a key priority from fiscal 2028 onward. Asia-Pacific remained weak, including a roughly 20% Timberland decline, while unmitigated tariffs are expected to total approximately $70 million to $80 million in the second half.

V.F. Stock Performance

NYSE:VFC traded down $0.42 during trading on Wednesday, reaching $16.61. The company's stock had a trading volume of 3,708,326 shares, compared to its average volume of 7,575,252. The firm has a market cap of $6.53 billion, a price-to-earnings ratio of 24.07 and a beta of 1.56. The firm has a 50 day moving average of $14.47 and a 200-day moving average of $16.98. V.F. has a 12 month low of $12.45 and a 12 month high of $22.27.

Insider Transactions at V.F.

In related news, insider Bracken Darrell acquired 32,894 shares of the firm's stock in a transaction that occurred on Friday, July 31st. The stock was acquired at an average price of $14.98 per share, for a total transaction of $492,752.12. Following the completion of the acquisition, the insider owned 1,402,109 shares of the company's stock, valued at approximately $21,003,592.82. This represents a 2.40% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Richard Carucci acquired 20,000 shares of the stock in a transaction on Thursday, August 13th. The stock was bought at an average cost of $14.73 per share, for a total transaction of $294,600.00. Following the transaction, the director owned 356,215 shares of the company's stock, valued at approximately $5,247,046.95. This trade represents a 5.95% increase in their position. The SEC filing for this purchase provides additional information. 1.54% of the stock is currently owned by insiders.

More V.F. News

Here are the key news stories impacting V.F. this week:

• Positive Sentiment: V.F. reported adjusted earnings of $0.70 per share, above the $0.54 analyst consensus, while revenue of $2.70 billion also exceeded estimates of $2.66 billion. Earnings increased from $0.52 per share in the prior-year quarter. V.F. Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Profitability improved significantly: net income rose to approximately $285 million from $190 million, while operating income reached $368 million. The North Face revenue grew 4% to $1.21 billion and Timberland revenue increased 4% to $526 million, supporting management’s turnaround strategy. VF Q2 Net Income Rises
• Positive Sentiment: Management reaffirmed fiscal 2027 guidance for at least 2% constant-currency revenue growth and an adjusted operating margin of approximately 8%. V.F. also declared its quarterly dividend of $0.09 per share, offering support for income-focused investors. VF Posts Strong Q2 Results and Reaffirms Outlook
• Neutral Sentiment: Direct-to-consumer revenue increased 1%, but wholesale revenue declined 6%, indicating an uneven recovery across distribution channels.
• Negative Sentiment: Total revenue declined approximately 4% year over year, and Vans revenue fell 10% to $548 million. Continued weakness at Vans could limit the pace of V.F.’s broader turnaround. VF Corp Finds Its Winning Formula

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the stock. Wall Street Zen cut shares of V.F. from a "buy" rating to a "hold" rating in a report on Sunday, July 12th. Weiss Ratings restated a "sell (d+)" rating on shares of V.F. in a report on Tuesday, September 1st. UBS Group set a $17.00 price target on shares of V.F. in a research report on Monday, October 19th. The Goldman Sachs Group cut their price target on V.F. from $18.00 to $16.00 and set a "neutral" rating for the company in a research note on Thursday, July 30th. Finally, Needham & Company LLC reissued a "buy" rating and set a $21.00 price objective on shares of V.F. in a report on Monday. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, V.F. has a consensus rating of "Hold" and a consensus price target of $18.14.

About V.F.

V.F. Corporation, commonly known as VF Corporation, is a global apparel, footwear and accessories company. Its brand portfolio includes The North Face, Vans, Timberland, Dickies, JanSport, Smartwool, Icebreaker, Kipling, Eastpak and Napapijri. These brands serve outdoor, active, workwear, lifestyle and youth-oriented markets.

VF sells products through wholesale partners, company-operated retail stores, brand websites and other digital channels. Its offerings include jackets, outdoor and performance apparel, footwear, backpacks, luggage and workwear.

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