V.F. (NYSE:VFC) Releases Earnings Results, Beats Expectations By $0.16 EPS

V.F. (NYSE:VFC) issued its quarterly earnings data on Wednesday. The textile maker reported $0.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.54 by $0.16, FiscalAI reports. V.F. had a return on equity of 18.91% and a net margin of 2.88%. The firm had revenue of $2.70 billion during the quarter, compared to analysts’ expectations of $2.66 billion. During the same period in the previous year, the firm posted $0.52 earnings per share. V.F.’s revenue was down 3.8% on a year-over-year basis.

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. Stock Up 1.1%

VFC stock opened at $17.22 on Thursday. V.F. has a 52-week low of $12.45 and a 52-week high of $22.27. The stock has a market capitalization of $6.77 billion, a price-to-earnings ratio of 24.96, a price-to-earnings-growth ratio of 0.90 and a beta of 1.56. The company has a 50-day moving average of $14.53 and a two-hundred day moving average of $16.97. The company has a debt-to-equity ratio of 1.70, a current ratio of 1.43 and a quick ratio of 0.78.

V.F. Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 17th. Stockholders of record on Thursday, December 10th will be paid a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date is Thursday, December 10th. V.F.’s payout ratio is presently 52.17%.

Insider Activity at V.F.

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

Trending Headlines about V.F.

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

• Positive Sentiment: V.F. reported adjusted EPS of $0.70, well above the $0.54 analyst consensus, while revenue of approximately $2.70 billion also exceeded expectations. Net income rose to $285.3 million from $189.8 million a year earlier, aided by improved margins. V.F. Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: The North Face, Timberland, and Altra provided the main growth engines, with North Face and Timberland revenue each increasing 4%. Direct-to-consumer revenue also grew 1%, and Vans direct-to-consumer sales reportedly increased for the first time in five years. VF Corp. Beats the Street in Q2
• Positive Sentiment: Management reaffirmed fiscal 2027 guidance for constant-currency revenue growth of at least 2% and an adjusted operating margin of approximately 8%, reducing concerns about another outlook cut. BTIG Research also maintained its Buy rating and set a $23 price target, implying substantial upside from the referenced price. V.F. Reaffirms Outlook and Dividend
• Positive Sentiment: V.F. declared a quarterly dividend of $0.09 per share, equal to $0.36 annually and a yield of roughly 2.1%. The dividend is payable December 17 to shareholders of record December 10. Recent insider purchases may also reinforce management’s confidence in the turnaround. VF Q2 Net Income Rises
• Negative Sentiment: Revenue still declined 3.8% year over year, and Vans revenue fell 10% to $547.6 million. Wholesale revenue dropped 6%, showing that the recovery remains uneven despite progress in selected brands. V.F. Corp Beats Estimates as Vans Weakness Continues

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on VFC. Robert W. Baird downgraded V.F. from an “outperform” rating to a “neutral” rating and set a $15.00 price objective for the company. in a report on Monday, September 14th. Evercore set a $16.00 target price on V.F. in a research note on Thursday, July 30th. BNP Paribas Exane upgraded V.F. from an “underperform” rating to a “neutral” rating and set a $16.00 price objective on the stock in a research note on Thursday. JPMorgan Chase & Co. raised shares of V.F. from an “underweight” rating to a “neutral” rating and set a $18.00 price objective for the company in a research report on Friday, October 9th. Finally, Piper Sandler upgraded V.F. from a “neutral” rating to an “overweight” rating and raised their target price for the company from $16.00 to $20.00 in a research note on Tuesday, October 13th. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, V.F. has a consensus rating of “Hold” and a consensus price target of $18.22.

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.