V.F. Corporation Surpasses Q3 Revenue Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: seekingalpha
- Revenue Growth: V.F. Corporation reported third-quarter revenue of $2.88 billion, exceeding analyst expectations, particularly driven by an 8% sales increase in The North Face brand, laying a solid foundation for future performance.
- Margin Improvement: The gross margin rate increased by 10 basis points to 57.0% on an ex-Dickies basis, indicating effective cost control and product mix optimization, which enhances profitability.
- Operating Income Increase: Operating income rose to $341 million from $289 million a year ago, reflecting the company's success in improving efficiency and profitability, thereby boosting investor confidence.
- Future Outlook: The company guided for Q4 revenue to be flat to up 2% and adjusted operating income expectations to range between $10 million and $30 million, demonstrating management's confidence in future performance and market adaptability.
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Analyst Views on VFC
Wall Street analysts forecast VFC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for VFC is 16.09 USD with a low forecast of 10.00 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
3 Buy
13 Hold
2 Sell
Hold
Current: 19.110
Low
10.00
Averages
16.09
High
25.00
Current: 19.110
Low
10.00
Averages
16.09
High
25.00
About VFC
V.F. Corp is a global apparel, footwear and accessories company. The Company designs, procures, markets and distributes a variety of branded products, including backpacks, luggage and accessories for consumers of all ages. Its products are marketed under VF-owned brand names. Its portfolio of outdoor, active and workwear brands includes The North Face, Vans, Timberland, Altra, Smartwool, Icebreaker, Kipling, Napapijri, Eastpak, JanSport, and Timberland PRO. Its segments include Outdoor, Active, and Work. The Outdoor segment is a group of outdoor-based lifestyle brands. Product offerings include performance and performance-inspired outdoor apparel, footwear, equipment and accessories. The Active segment is a group of activity-based lifestyle brands. Product offerings include active apparel, footwear, backpacks, luggage and accessories. The Work segment consists of performance and lifestyle workwear brands with product offerings that include apparel, footwear and accessories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
V.F. Corporation Reports Strong Q3 2026 Earnings Growth
- Revenue Growth: V.F. Corporation reported Q3 revenue of $2.8 billion, up 2% year-on-year, exceeding expectations and indicating a recovery in the U.S. market, particularly driven by strong digital sales performance that revitalized overall business.
- Brand Performance: The North Face brand achieved a 5% revenue increase with all product categories rising, especially in performance apparel and footwear, reflecting strong brand recognition and competitive positioning in the market.
- Financial Health: The adjusted operating margin reached 12.1%, up 30 basis points year-over-year, while net debt decreased by $500 million, demonstrating effective measures in reducing liabilities and enhancing profitability.
- Outlook: Management anticipates Q4 revenue to be flat to up 2%, with plans to achieve a gross margin of over 54.5% in the future, indicating confidence in sustained growth and market share expansion.
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