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

V.F. (NYSE:VFC) released its earnings results on Wednesday. The textile maker reported $0.70 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.54 by $0.16, FiscalAI reports. The firm had revenue of $2.70 billion during the quarter, compared to analysts’ expectations of $2.66 billion. The business’s quarterly revenue was down 3.8% compared to the same quarter last year. During the same period in the prior year, the business earned $0.52 earnings per share.

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

• Second-quarter results exceeded expectations: revenue grew 1% versus guidance for flat growth, operating income reached $364 million—about $50 million ahead of guidance—and EPS rose more than 40% to $0.70. Gross margin expanded nearly 300 basis points to 55.4%.
• Management reaffirmed fiscal 2027 guidance, including revenue growth of 2% or better and operating margin of approximately 8%, while raising the expected full-year tax rate outlook to the high-20% range. It also expects approximately $515 million or more of reported free cash flow, including tariff refunds.
• The North Face and Timberland each grew 4% in the quarter, while Altra surged more than 40% across all regions and channels. Management said 75% of the portfolio is now growing, up from 43% in fiscal 2024.
• Vans declined 9.8% in the second quarter, with wholesale still affected by destocking, although global direct-to-consumer sales returned to growth for the first time in nearly five years. Management expects Vans to improve to down 4% or better in the third quarter and down 2% or better in the second half, citing firm wholesale orders and new product launches.
• Inventory increased 7% year over year as VF invested in the back half, and management acknowledged that inventory management will be a key priority from fiscal 2028 onward. Asia-Pacific remained weak, including a roughly 20% Timberland decline, while unmitigated tariffs are expected to total approximately $70 million to $80 million in the second half.

V.F. Trading Down 2.5%

Shares of NYSE VFC traded down $0.42 during mid-day trading on Wednesday, hitting $16.61. The company had a trading volume of 3,708,326 shares, compared to its average volume of 7,575,252. The company has a market capitalization of $6.53 billion, a price-to-earnings ratio of 24.07 and a beta of 1.56. V.F. has a 1 year low of $12.45 and a 1 year high of $22.27. The stock’s 50-day moving average price is $14.47 and its 200-day moving average price is $16.98.

Key Headlines Impacting V.F.

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

• Positive Sentiment: V.F. reported adjusted earnings of $0.70 per share, above the $0.54 analyst consensus, while revenue of $2.70 billion also exceeded estimates of $2.66 billion. Earnings increased from $0.52 per share in the prior-year quarter. V.F. Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Profitability improved significantly: net income rose to approximately $285 million from $190 million, while operating income reached $368 million. The North Face revenue grew 4% to $1.21 billion and Timberland revenue increased 4% to $526 million, supporting management’s turnaround strategy. VF Q2 Net Income Rises
• Positive Sentiment: Management reaffirmed fiscal 2027 guidance for at least 2% constant-currency revenue growth and an adjusted operating margin of approximately 8%. V.F. also declared its quarterly dividend of $0.09 per share, offering support for income-focused investors. VF Posts Strong Q2 Results and Reaffirms Outlook
• Neutral Sentiment: Direct-to-consumer revenue increased 1%, but wholesale revenue declined 6%, indicating an uneven recovery across distribution channels.
• Negative Sentiment: Total revenue declined approximately 4% year over year, and Vans revenue fell 10% to $548 million. Continued weakness at Vans could limit the pace of V.F.’s broader turnaround. VF Corp Finds Its Winning Formula

Insiders Place Their Bets

In related news, insider Bracken Darrell bought 32,894 shares of V.F. stock in a transaction on Friday, July 31st. The stock was acquired at an average price of $14.98 per share, with a total value of $492,752.12. Following the acquisition, the insider directly owned 1,402,109 shares of the company’s stock, valued at $21,003,592.82. This represents a 2.40% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Richard Carucci purchased 20,000 shares of the firm’s stock in a transaction dated Thursday, August 13th. The shares were bought at an average price of $14.73 per share, for a total transaction of $294,600.00. Following the completion of the transaction, the director owned 356,215 shares of the company’s stock, valued at approximately $5,247,046.95. This trade represents a 5.95% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 1.54% of the company’s stock.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the company. BTIG Research reiterated a “buy” rating on shares of V.F. in a research note on Friday, July 24th. Williams Trading set a $22.00 price objective on V.F. in a research note on Thursday, October 15th. Needham & Company LLC restated a “buy” rating and issued a $21.00 price objective on shares of V.F. in a research note on Monday. UBS Group set a $17.00 price objective on shares of V.F. in a report on Monday, October 19th. Finally, Robert W. Baird reiterated a “neutral” rating and set a $15.00 target price on shares of V.F. in a research report on Monday, September 14th. Two equities research 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 issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $18.14.

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.