V.F. (NYSE:VFC) Issues Quarterly Earnings Results, Misses Estimates By $0.05 EPS

Key Points

• V.F. missed quarterly earnings expectations: The company reported a loss of $0.27 per share versus the expected $0.22 loss, while revenue of $1.67 billion exceeded estimates but declined 5.2% year over year.
• Performance was mixed across brands: The North Face and Timberland grew 4% and 3%, respectively, but Vans revenue fell 9% globally, with weakness expected to continue into the second quarter.
• Management raised its fiscal 2027 revenue outlook to growth of at least 2% and highlighted progress in reducing net debt by 20% year over year, while announcing that COO Abhishek Dalmia will become CFO following Paul Vogel’s departure.

V.F. (NYSE:VFC - Get Free Report) issued its earnings results on Wednesday. The textile maker reported ($0.27) EPS for the quarter, missing the consensus estimate of ($0.22) by ($0.05), FiscalAI reports. V.F. had a net margin of 2.65% and a return on equity of 21.05%. The business had revenue of $1.67 billion for the quarter, compared to analysts' expectations of $1.64 billion. During the same quarter in the prior year, the business posted ($0.24) earnings per share. The business's revenue for the quarter was down 5.2% on a year-over-year basis.

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

• V.F. raised its fiscal 2027 revenue outlook to growth of 2% or better, up from the prior 1%–2% forecast, after first-quarter revenue and operating performance exceeded expectations.
• The North Face and Timberland delivered growth of 4% and 3%, respectively, while V.F. cited strong demand for outerwear, footwear, Timberland’s premium boot, and emerging brand Altra.
• Vans revenue fell 9% globally, with wholesale remaining particularly weak. Management expects a similar decline in the second quarter, although it projects a substantially improved second half as new products reach wholesale partners.
• The company continued to strengthen its balance sheet, reducing net debt by $1.1 billion, or 20%, year over year; inventory declined 4% excluding Dickies and foreign exchange, while first-quarter free cash flow improved by approximately $75 million.
• CFO Paul Vogel is stepping down and COO Abhishek Dalmia will assume a combined CFO/COO role. Management characterized the transition as planned and reaffirmed its medium-term targets, including an operating-margin exit rate of at least 10% and leverage of 2.5 times or better.

V.F. Price Performance

Shares of NYSE:VFC traded down $3.00 during trading on Wednesday, hitting $15.24. 13,359,672 shares of the company's stock were exchanged, compared to its average volume of 7,138,855. The company has a debt-to-equity ratio of 1.90, a current ratio of 1.84 and a quick ratio of 1.21. V.F. has a 52-week low of $11.10 and a 52-week high of $22.27. The business's 50-day simple moving average is $16.91 and its 200 day simple moving average is $18.11. The company has a market cap of $5.98 billion, a price-to-earnings ratio of 23.85, a PEG ratio of 1.20 and a beta of 1.56.

V.F. Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Wednesday, June 10th were paid a $0.09 dividend. The ex-dividend date of this dividend was Wednesday, June 10th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 2.4%. V.F.'s dividend payout ratio is 56.25%.

Insider Buying and Selling

In other V.F. news, Director Richard Carucci purchased 30,000 shares of the company's stock in a transaction on Tuesday, June 9th. The stock was acquired at an average cost of $17.17 per share, for a total transaction of $515,100.00. Following the purchase, the director directly owned 336,043 shares of the company's stock, valued at $5,769,858.31. This trade represents a 9.80% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 1.54% of the company's stock.

Hedge Funds Weigh In On V.F.

A number of hedge funds and other institutional investors have recently modified their holdings of VFC. Captrust Financial Advisors increased its holdings in V.F. by 28.0% in the 4th quarter. Captrust Financial Advisors now owns 90,873 shares of the textile maker's stock valued at $1,643,000 after acquiring an additional 19,880 shares during the last quarter. Russell Investments Group Ltd. boosted its holdings in shares of V.F. by 1.9% during the 3rd quarter. Russell Investments Group Ltd. now owns 578,767 shares of the textile maker's stock valued at $8,352,000 after purchasing an additional 10,881 shares during the last quarter. Finally, New York State Common Retirement Fund grew its position in shares of V.F. by 0.8% during the fourth quarter. New York State Common Retirement Fund now owns 540,861 shares of the textile maker's stock valued at $9,779,000 after purchasing an additional 4,249 shares in the last quarter. Institutional investors own 86.84% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the company. Evercore set a $18.00 target price on V.F. in a research report on Thursday, May 21st. Barclays decreased their price objective on shares of V.F. from $25.00 to $24.00 and set an "overweight" rating for the company in a report on Thursday, May 21st. UBS Group decreased their target price on shares of V.F. from $20.00 to $18.00 and set a "neutral" rating for the company in a research note on Thursday, May 21st. Williams Trading set a $19.00 price target on V.F. in a report on Sunday, May 17th. Finally, Truist Financial cut their price objective on V.F. from $18.00 to $15.00 and set a "hold" rating for the company in a report on Thursday, May 21st. Two investment analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, twelve have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $18.58.

More V.F. News

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

• Positive Sentiment: V.F. reported quarterly revenue of $1.67 billion, above the $1.64 billion analyst consensus. Management also indicated that the first-quarter outlook improved and appointed Abhishek Dalmia as executive vice president and chief financial officer, potentially strengthening financial oversight during the turnaround. VF Names New CFO as Q1 Outlook Improves
• Neutral Sentiment: The stock had risen ahead of the earnings release as investors anticipated progress at The North Face, Timberland and Vans, along with improving margins and lower debt. That positioning increased the potential for profit-taking when the quarterly numbers failed to fully meet expectations. VF Corporation rises ahead of earnings as turnaround hopes build
• Negative Sentiment: V.F. posted a loss of $0.27 per share, missing the expected $0.22 loss and worsening from a $0.24 loss in the prior-year quarter. Revenue declined 5.2% year over year, indicating that the recovery remains uneven despite revenue exceeding the latest estimate. V.F. Reports Q1 Loss, Misses Revenue Estimates
• Negative Sentiment: The earnings miss is particularly disappointing because V.F. had recently reinstated fiscal-year guidance and was being valued on expectations of an improving turnaround. Investors may now demand clearer evidence of sustainable earnings growth, margin expansion and debt reduction.

V.F. Company Profile

VF Corporation, commonly branded as VF, is a global apparel and footwear company that develops, markets and distributes a diverse portfolio of consumer brands. Its offerings span outdoor and action sports apparel, footwear and accessories under marquee names such as The North Face, Vans, Timberland, Dickies, JanSport and Smartwool. Through a “house of brands” strategy, VF leverages the unique heritage and design expertise of each label to serve distinct lifestyle and performance segments.

Founded in 1899 in Pennsylvania as the Reading Glove and Mitten Manufacturing Company, VF evolved through a series of acquisitions and strategic expansions to become a leading player in the global apparel industry.

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