V.F. (NYSE:VFC) Shares Gap Down After Earnings Miss

V.F. Corporation (NYSE:VFC)’s stock price gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $18.25, but opened at $16.04. V.F. shares last traded at $14.8590, with a volume of 5,780,597 shares.

The textile maker reported ($0.27) EPS for the quarter, missing analysts’ consensus estimates of ($0.22) by ($0.05). V.F. had a return on equity of 21.05% and a net margin of 2.65%.The firm had revenue of $1.67 billion for the quarter, compared to analyst estimates of $1.64 billion. During the same period in the previous year, the business earned ($0.24) EPS. V.F.’s revenue for the quarter was down 5.2% compared to the same quarter last year.

V.F. Dividend Announcement

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

V.F. News Summary

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.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on VFC shares. Barclays decreased their price objective on shares of V.F. from $25.00 to $24.00 and set an “overweight” rating on the stock in a report on Thursday, May 21st. Williams Trading set a $19.00 price target on shares of V.F. in a research report on Sunday, May 17th. Wells Fargo & Company decreased their price target on shares of V.F. from $20.00 to $18.00 and set an “equal weight” rating on the stock in a research note on Thursday, May 21st. Weiss Ratings cut V.F. from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, June 4th. Finally, Citigroup started coverage on V.F. in a research note on Thursday, May 21st. They set a “neutral” rating and a $18.00 price objective for the company. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, twelve have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $18.58.

Insiders Place Their Bets

In related news, Director Richard Carucci purchased 30,000 shares of the company’s stock in a transaction dated 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 completion of the transaction, the director directly owned 336,043 shares of the company’s stock, valued at approximately $5,769,858.31. This trade represents a 9.80% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 1.54% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Parallel Advisors LLC increased its position in V.F. by 27.9% during the first quarter. Parallel Advisors LLC now owns 2,694 shares of the textile maker’s stock worth $46,000 after purchasing an additional 588 shares during the last quarter. Root Financial Partners LLC boosted its holdings in V.F. by 282.9% in the 1st quarter. Root Financial Partners LLC now owns 3,052 shares of the textile maker’s stock valued at $52,000 after purchasing an additional 2,255 shares during the last quarter. EverSource Wealth Advisors LLC grew its stake in shares of V.F. by 151.6% in the 4th quarter. EverSource Wealth Advisors LLC now owns 6,915 shares of the textile maker’s stock valued at $125,000 after buying an additional 4,167 shares during the period. Versant Capital Management Inc grew its stake in shares of V.F. by 213.7% in the 2nd quarter. Versant Capital Management Inc now owns 8,078 shares of the textile maker’s stock valued at $135,000 after buying an additional 5,503 shares during the period. Finally, Quent Capital LLC increased its holdings in shares of V.F. by 1,635.2% during the 4th quarter. Quent Capital LLC now owns 13,170 shares of the textile maker’s stock worth $238,000 after buying an additional 12,411 shares during the last quarter. Institutional investors and hedge funds own 86.84% of the company’s stock.

V.F. Price Performance

The firm has a market cap of $5.85 billion, a price-to-earnings ratio of 23.29, a P/E/G ratio of 1.20 and a beta of 1.56. The company has a current ratio of 1.84, a quick ratio of 1.21 and a debt-to-equity ratio of 1.90. The stock’s fifty day moving average price is $16.91 and its 200-day moving average price is $18.11.

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.