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

V.F. (NYSE:VFC) posted its quarterly earnings data on Wednesday. The textile maker reported ($0.27) earnings per share (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 firm had revenue of $1.67 billion during the quarter, compared to analysts’ expectations of $1.64 billion. During the same quarter in the prior year, the firm posted ($0.24) EPS. V.F.’s quarterly revenue was down 5.2% compared to the same quarter last year.

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 Down 1.3%

Shares of VFC traded down $0.19 during mid-day trading on Thursday, reaching $14.89. The company’s stock had a trading volume of 3,066,264 shares, compared to its average volume of 7,212,239. 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 12-month low of $11.10 and a 12-month high of $22.27. The stock has a market cap of $5.84 billion, a PE ratio of 23.25, a price-to-earnings-growth ratio of 1.27 and a beta of 1.56. The company’s 50 day moving average is $16.89 and its 200 day moving average is $18.08.

V.F. Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Thursday, September 10th will be issued a $0.09 dividend. The ex-dividend date is Thursday, September 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 presently 56.25%.

Insiders Place Their Bets

In other V.F. news, Director Richard Carucci purchased 30,000 shares of the stock in a transaction that occurred on Tuesday, June 9th. The stock was purchased at an average cost of $17.17 per share, with a total value of $515,100.00. Following the completion of the acquisition, 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 1.54% of the stock is currently owned by insiders.

Institutional Trading of V.F.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Captrust Financial Advisors lifted its position in shares of V.F. by 28.0% during the 4th 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 last quarter. Russell Investments Group Ltd. grew its position in shares of V.F. by 1.9% in the 3rd quarter. Russell Investments Group Ltd. now owns 578,767 shares of the textile maker’s stock valued at $8,352,000 after buying an additional 10,881 shares during the last quarter. Finally, New York State Common Retirement Fund raised its stake in V.F. by 0.8% during the 4th quarter. New York State Common Retirement Fund now owns 540,861 shares of the textile maker’s stock worth $9,779,000 after acquiring an additional 4,249 shares in the last quarter. Institutional investors and hedge funds own 86.84% of the company’s stock.

Analyst Upgrades and Downgrades

VFC has been the topic of several analyst reports. BTIG Research reiterated a “buy” rating on shares of V.F. in a research note on Friday, July 24th. Evercore set a $18.00 target price on V.F. in a research note on Thursday, May 21st. Wall Street Zen downgraded V.F. from a “buy” rating to a “hold” rating in a report on Sunday, July 12th. Zacks Research lowered V.F. from a “strong-buy” rating to a “hold” rating in a research report on Monday, May 25th. Finally, Weiss Ratings cut V.F. from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Thursday, June 4th. Two equities research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, twelve have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and an average price target of $18.03.

Key Stories Impacting 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 2% or better while maintaining an approximately 8% operating-margin target, suggesting expectations for continued progress in the turnaround. V.F. fiscal 2027 outlook
• Positive Sentiment: Quarterly revenue of $1.67 billion exceeded the roughly $1.64 billion analyst consensus, while the company cited margin improvement and lower net debt as signs of operational progress. V.F. earnings analysis
• Positive Sentiment: V.F. declared a quarterly dividend of $0.09 per share, payable September 17 to shareholders of record September 10, supporting the stock’s income appeal.
• Neutral Sentiment: Needham maintained a “buy” rating despite lowering its price target to $21 from $25, while Telsey reduced its target to $17 from $20 and assigned a “market perform” rating. The mixed analyst reaction reflects potential upside but limited confidence in the recovery.
• Negative Sentiment: V.F. reported a fiscal first-quarter loss of $0.27 per share, missing the expected $0.22 loss and worsening from a $0.24 loss a year earlier. Revenue also declined 5.2% year over year. V.F. first-quarter results
• Negative Sentiment: Vans remained the main weakness, with disappointing wholesale performance weighing on sales. Management acknowledged that the quarter “wasn’t great,” reinforcing concerns that the turnaround will take time. V.F. earnings commentary
• Negative Sentiment: The company also announced a new chief financial officer, adding leadership-transition uncertainty as investors evaluate execution and financial discipline.
• Negative Sentiment: Unusually heavy put-option activity indicated heightened near-term bearish hedging and added to pressure on the shares.

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.