VF Corp Reports Strong Q3 Earnings, Exceeding Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy VFC?
Source: seekingalpha
VF Corp's stock rose by 4.69% as it reached a 20-day high, reflecting positive investor sentiment following its strong Q3 earnings report.
The company reported Q3 revenue of $2.875 billion, a 1% increase year-over-year, exceeding market expectations. Notably, the North Face® and Timberland® brands achieved revenue growth of 8% and 5%, respectively, showcasing the effectiveness of VF's brand strategies. Additionally, the adjusted earnings per share of 56 cents surpassed the analyst consensus of 45 cents, indicating robust performance during the holiday season.
This strong financial performance, coupled with a positive outlook for Q4, reinforces investor confidence in VF Corp's growth trajectory, particularly in the Americas market, which has shown significant recovery.
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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: 20.100
Low
10.00
Averages
16.09
High
25.00
Current: 20.100
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.
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- Brand Opportunities: Brands like Abercrombie & Fitch could leverage this nostalgia wave to reshape their image, particularly if they successfully distance themselves from past controversies, potentially attracting more young consumers.
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- 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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- Earnings Beat: VF Corporation reported adjusted earnings per share of 56 cents for Q3 2026, surpassing the analyst consensus of 45 cents, indicating strong performance during the holiday season, particularly from The North Face and Timberland brands.
- Sales Growth: Quarterly sales reached $2.876 billion, exceeding the market expectation of $2.768 billion, driven by robust performance in the direct-to-consumer channel and the Americas region.
- Operating Income Increase: Adjusted operating income totaled $341 million, up from $318 million a year ago, with operating margin expanding by 30 basis points to 12.1%, reflecting successful cost control and efficiency improvements.
- Optimistic Outlook: VF expects fourth-quarter revenue to range between $2.140 billion and $2.183 billion, exceeding analysts' average estimate of $2.095 billion, showcasing the company's confidence in future performance.
See More
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- Dividend Payment Timeline: The dividend is payable on March 19, with a record date of March 10 and an ex-dividend date also set for March 10, ensuring shareholders receive their earnings promptly.
- Consistent Dividend Record: V.F. Corp has now announced a $0.09 dividend for ten consecutive quarters, reflecting a sustained commitment to shareholder returns despite facing challenges with brand performance.
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See More
