V.F. (NYSE:VFC) Shares Gap Down - Here's Why

Key Points

• V.F. shares gapped down from $17.03 to $16.50 despite the company beating quarterly expectations, with adjusted EPS of $0.70 versus $0.54 expected and revenue of about $2.70 billion versus $2.66 billion.
• Profitability improved significantly, with net income rising to $285.3 million and growth at The North Face and Timberland, but total revenue declined 3.8% year over year and Vans revenue fell 10% to $547.6 million.
• Management reaffirmed fiscal 2027 guidance and maintained the $0.09 quarterly dividend, while analysts remain broadly cautious with a consensus Hold rating and an average price target of $18.14.

Shares of V.F. Corporation (NYSE:VFC - Get Free Report) gapped down prior to trading on Wednesday. The stock had previously closed at $17.03, but opened at $16.50. V.F. shares last traded at $16.3960, with a volume of 1,815,118 shares trading hands.

Key Stories Impacting V.F.

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

• Positive Sentiment: VFC reported adjusted earnings of $0.70 per share, well above the $0.54 analyst consensus, while revenue of approximately $2.70 billion also exceeded expectations of $2.66 billion. Earnings increased from $0.52 per share a year earlier. V.F. Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Net income rose to $285.3 million from $189.8 million, while operating income reached $367.9 million, representing a 13.7% operating margin. The North Face revenue increased 4% to $1.21 billion and Timberland revenue rose 4% to $525.9 million. VF Q2 Net Income Rises
• Positive Sentiment: Management reaffirmed fiscal 2027 guidance, including constant-currency revenue growth of at least 2% and an adjusted operating margin of approximately 8%. VFC also maintained its quarterly dividend at $0.09 per share. VF Q2 Profit Surges
• Neutral Sentiment: Vans remains the key weakness: revenue declined 10% to $547.6 million. Management expects Vans wholesale performance to improve during the second half, but the brand’s continued decline limits the impact of gains at The North Face and Timberland. VF Finds Its Winning Formula
• Negative Sentiment: Total revenue fell approximately 4% year over year, with wholesale revenue down 6%. The decline reinforces concerns that VFC’s turnaround remains uneven despite improved profitability and a quarterly earnings beat. V.F. Q2 Key Metrics Versus Estimates
• Negative Sentiment: Recent technical coverage noted that VFC shares had broken below their 200-day moving average, while a separate report indicated that the consensus price target was reduced. These factors may be contributing to selling pressure following the results. V.F. Shares Break Below 200-Day Moving Average

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the company. Needham & Company LLC reiterated a "buy" rating and set a $21.00 price target on shares of V.F. in a research report on Monday. JPMorgan Chase & Co. upgraded V.F. from an "underweight" rating to a "neutral" rating and set a $18.00 price objective for the company in a research report on Friday, October 9th. Deutsche Bank Aktiengesellschaft assumed coverage on V.F. in a research report on Thursday, September 17th. They issued a "hold" rating and a $14.00 target price on the stock. Wells Fargo & Company cut their target price on V.F. from $18.00 to $16.00 and set an "equal weight" rating on the stock in a research note on Thursday, July 30th. Finally, Piper Sandler raised shares of V.F. from a "neutral" rating to an "overweight" rating and boosted their price target for the company from $16.00 to $20.00 in a report on Tuesday, October 13th. Two investment 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. Based on data from MarketBeat, V.F. presently has a consensus rating of "Hold" and an average target price of $18.14.

V.F. Stock Performance

The firm has a 50 day simple moving average of $14.47 and a two-hundred day simple moving average of $16.98. The stock has a market cap of $6.47 billion, a P/E ratio of 23.99 and a beta of 1.56.

V.F. (NYSE:VFC - Get Free Report) last announced its quarterly earnings results on Wednesday, October 28th. The textile maker reported $0.70 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.54 by $0.16. The business had revenue of $2.70 billion for the quarter, compared to analyst estimates of $2.66 billion. During the same quarter last year, the firm posted $0.52 EPS. The company's revenue was down 3.8% compared to the same quarter last year. As a group, equities research analysts predict that V.F. Corporation will post 1.10 EPS for the current year.

Insider Transactions at V.F.

In other V.F. news, Director Richard Carucci bought 20,000 shares of the company's stock in a transaction that occurred on Thursday, August 13th. The shares were acquired at an average cost of $14.73 per share, for a total transaction of $294,600.00. Following the acquisition, the director directly owned 356,215 shares of the company's stock, valued at $5,247,046.95. This trade represents a 5.95% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this link. Also, insider Bracken Darrell bought 32,894 shares of the business's stock in a transaction that occurred on Friday, July 31st. The shares were acquired at an average cost of $14.98 per share, with a total value of $492,752.12. Following the completion of the purchase, the insider owned 1,402,109 shares of the company's stock, valued at approximately $21,003,592.82. The trade was a 2.40% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 1.54% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Parallel Advisors LLC lifted its holdings in shares of V.F. by 27.9% during the first quarter. Parallel Advisors LLC now owns 2,694 shares of the textile maker's stock valued at $46,000 after purchasing an additional 588 shares during the last quarter. HB Wealth Management LLC increased its stake in V.F. by 4.9% in the 2nd quarter. HB Wealth Management LLC now owns 30,687 shares of the textile maker's stock worth $512,000 after purchasing an additional 1,428 shares in the last quarter. IFP Advisors Inc raised its holdings in V.F. by 27.3% during the 2nd quarter. IFP Advisors Inc now owns 6,682 shares of the textile maker's stock worth $111,000 after buying an additional 1,431 shares during the period. Hsbc Holdings PLC lifted its stake in V.F. by 7.7% during the second quarter. Hsbc Holdings PLC now owns 29,518 shares of the textile maker's stock valued at $492,000 after buying an additional 2,121 shares in the last quarter. Finally, Root Financial Partners LLC boosted its holdings in shares of V.F. by 282.9% in the first quarter. Root Financial Partners LLC now owns 3,052 shares of the textile maker's stock worth $52,000 after buying an additional 2,255 shares during the period. Institutional investors and hedge funds own 86.84% of the company's stock.

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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