Shares of V.F. Corporation (NYSE:VFC – Get Free Report) gapped down prior to trading on Wednesday following a dissappointing earnings announcement. 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 trading hands.
The textile maker reported ($0.27) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.22) by ($0.05). The business had revenue of $1.67 billion for the quarter, compared to the consensus estimate of $1.64 billion. V.F. had a return on equity of 21.05% and a net margin of 2.65%.The firm’s revenue was down 5.2% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.24) earnings per share.
V.F. Dividend Announcement
The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Wednesday, June 10th were paid a dividend of $0.09 per share. The ex-dividend date was Wednesday, June 10th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 2.4%. V.F.’s dividend payout ratio (DPR) is currently 56.25%.
V.F. News Roundup
- 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 research analysts have recently commented on VFC shares. Wall Street Zen lowered V.F. from a “buy” rating to a “hold” rating in a research report on Sunday, July 12th. Zacks Research downgraded V.F. from a “strong-buy” rating to a “hold” rating in a research report on Monday, May 25th. UBS Group cut their target price on V.F. from $20.00 to $18.00 and set a “neutral” rating on the stock in a research note 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. Finally, Barclays lowered their price target 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. Two research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, twelve have given a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $18.58.
Get Our Latest Stock Analysis on V.F.
Insider Activity
In related news, Director Richard Carucci acquired 30,000 shares of the 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 purchase, the director owned 336,043 shares of the company’s stock, valued at approximately $5,769,858.31. This represents a 9.80% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 1.54% of the company’s stock.
Institutional Investors Weigh In On V.F.
A number of large investors have recently bought and sold shares of the company. Russell Investments Group Ltd. increased its holdings in V.F. by 14.0% in the 4th quarter. Russell Investments Group Ltd. now owns 659,773 shares of the textile maker’s stock worth $11,930,000 after buying an additional 81,006 shares during the period. Fiduciary Alliance LLC boosted its holdings in shares of V.F. by 10.3% in the 4th quarter. Fiduciary Alliance LLC now owns 647,496 shares of the textile maker’s stock valued at $11,707,000 after acquiring an additional 60,619 shares during the last quarter. New York State Common Retirement Fund boosted its holdings in shares of V.F. by 0.8% in the 4th quarter. New York State Common Retirement Fund now owns 540,861 shares of the textile maker’s stock valued at $9,779,000 after acquiring an additional 4,249 shares during the last quarter. Hillsdale Investment Management Inc. acquired a new stake in shares of V.F. in the first quarter worth $3,209,000. Finally, Handelsbanken Fonder AB raised its holdings in shares of V.F. by 3.7% during the second quarter. Handelsbanken Fonder AB now owns 116,200 shares of the textile maker’s stock worth $1,938,000 after purchasing an additional 4,200 shares during the last quarter. Hedge funds and other institutional investors own 86.84% of the company’s stock.
V.F. Stock Down 18.3%
The company has a market capitalization 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 business’s 50-day moving average is $16.91 and its 200-day moving average is $18.11. The company has a quick ratio of 1.21, a current ratio of 1.84 and a debt-to-equity ratio of 1.90.
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.
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