V.F. (NYSE:VFC) Announces Earnings Results

V.F. (NYSE:VFC) posted its quarterly earnings results on Wednesday. The textile maker reported ($0.27) EPS for the quarter, missing analysts’ consensus estimates of ($0.22) by ($0.05), FiscalAI reports. V.F. had a return on equity of 18.91% and a net margin of 2.88%.The business had revenue of $1.67 billion for the quarter, compared to the consensus estimate of $1.64 billion. During the same quarter in the previous year, the business posted ($0.24) EPS. The company’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. Stock Performance

Shares of VFC traded down $0.51 during mid-day trading on Friday, hitting $14.45. The stock had a trading volume of 1,907,806 shares, compared to its average volume of 7,255,383. The company has a debt-to-equity ratio of 1.70, a current ratio of 1.43 and a quick ratio of 1.21. The firm has a market cap of $5.67 billion, a P/E ratio of 21.04, a PEG ratio of 1.05 and a beta of 1.56. V.F. has a 52 week low of $11.10 and a 52 week high of $22.27. The business has a fifty day moving average price of $16.87 and a 200-day moving average price of $18.04.

V.F. Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Thursday, September 10th will be given a $0.09 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $0.36 annualized dividend and a yield of 2.5%. V.F.’s payout ratio is currently 56.25%.

Trending Headlines about V.F.

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

• Positive Sentiment: Management raised its fiscal 2027 revenue outlook to growth of approximately 2% or better while maintaining a target of roughly 8% operating margin, signaling confidence in its turnaround plan. V.F. raises fiscal 2027 revenue outlook
• Positive Sentiment: Quarterly revenue of $1.67 billion exceeded expectations of $1.64 billion, while the company highlighted margin improvement and lower net debt as signs of progress. V.F. Corp. Q1 earnings
• Positive Sentiment: V.F. continues to declare a quarterly dividend of $0.09 per share, representing an annualized yield of approximately 2.4% based on the provided price data.
• Neutral Sentiment: Wells Fargo lowered its price target to $16 from $18 but retained an Equal Weight rating, suggesting limited near-term conviction despite potential upside from current levels. V.F. given new Wells Fargo price target
• Neutral Sentiment: Shareholders approved the board’s nominees, executive compensation and auditor appointment at the annual meeting, removing a potential governance overhang. VF shareholder meeting results
• Negative Sentiment: V.F. reported an adjusted loss of $0.27 per share, wider than the expected $0.22 loss, and revenue fell 5.2% year over year. Vans wholesale performance was a major drag. V.F. CEO discusses quarterly results
• Negative Sentiment: The earnings reaction was intensified by management’s admission that the quarter “wasn’t great” and reports of a CFO departure, raising concerns about execution and the pace of the turnaround. V.F. stock reaction to Vans performance
• Negative Sentiment: Truist cut its price target to $14 from $15 with a Hold rating, while Telsey reduced its target to $17 from $20, reflecting analyst caution after the earnings miss.

Insider Buying and Selling

In related news, Director Richard Carucci purchased 30,000 shares of the firm’s stock in a transaction dated Tuesday, June 9th. The shares were purchased at an average cost of $17.17 per share, for a total transaction of $515,100.00. Following the completion of the transaction, the director directly owned 336,043 shares in the company, valued at approximately $5,769,858.31. This represents a 9.80% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Company insiders own 1.54% of the company’s stock.

Hedge Funds Weigh In On V.F.

Several institutional investors have recently modified their holdings of VFC. Russell Investments Group Ltd. increased its stake in shares of V.F. by 14.0% in the fourth quarter. Russell Investments Group Ltd. now owns 659,773 shares of the textile maker’s stock worth $11,930,000 after buying an additional 81,006 shares during the period. Captrust Financial Advisors lifted its holdings in V.F. by 28.0% in the fourth quarter. Captrust Financial Advisors now owns 90,873 shares of the textile maker’s stock worth $1,643,000 after buying an additional 19,880 shares during the period. Finally, New York State Common Retirement Fund boosted 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. 86.84% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several brokerages have issued reports on VFC. Telsey Advisory Group cut their price objective on shares of V.F. from $20.00 to $17.00 and set a “market perform” rating for the company in a research report on Thursday. Truist Financial decreased their target price on shares of V.F. from $15.00 to $14.00 and set a “hold” rating on the stock in a report on Thursday. Zacks Research cut V.F. from a “strong-buy” rating to a “hold” rating in a report on Monday, May 25th. Stifel Nicolaus lowered their target price on V.F. from $19.00 to $17.00 and set a “hold” rating for the company in a research note on Thursday. Finally, Weiss Ratings cut shares of V.F. from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Thursday, June 4th. Two analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, V.F. currently has an average rating of “Hold” and an average target price of $18.21.

About V.F.

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.