Group 1 - V.F. Corporation is set to report its fiscal Q4 results for the January-March period on May 21 before the market opens [1] - The company's brand turnaround is still in the early stages [1] Group 2 - The investment philosophy focuses on identifying mispriced securities by understanding the drivers behind a company's financials [1] - A DCF model valuation is often used to reveal the potential of a stock [1] - This methodology allows for a flexible approach to investing, considering all prospects of a stock to assess risk-to-reward [1]

Core Viewpoint - V.F. Corporation (VFC) is expected to report a year-over-year decline in revenues for the fourth quarter of fiscal 2025, with a projected revenue of $2.2 billion, reflecting a 7.7% decrease from the previous year [1][3]. Revenue and Earnings Estimates - The consensus estimate for VFC's loss is 15 cents per share, an improvement from the 32 cents reported in the same quarter last year [2]. - Management anticipates a revenue decline of 4-6% year-over-year on a reported basis and 2-4% in constant currency for the fourth quarter [5]. Brand Performance and Challenges - VFC is facing challenges with brand performance, particularly with Vans, which is experiencing weak sales and struggles to connect with its core customer base [4]. - Sales for Vans and The North Face brands are expected to decline by 8.3% and 4.5%, respectively, in the upcoming quarter [4]. Cost Management and Transformation Efforts - The company is on track to achieve $300 million in annual fixed cost savings by the end of fiscal 2025, with an additional $40 million in reductions expected in the fourth quarter [7]. - VFC's transformation program, "Reinvent," aims to enhance brand focus and improve operating performance, with specific objectives including improving North America performance and reducing costs [6]. Valuation and Market Performance - VFC stock is currently trading at a forward price/earnings ratio of 13.85X, which is higher than the industry average of 12.59X [10]. - Over the past year, VFC shares have gained 12.4%, contrasting with a 1.9% decline in the industry [10].

Core Viewpoint - V.F. Corporation (VFC) has experienced a significant stock increase of 24.8% over the past three months, driven by strong financial performance and growth initiatives, raising questions about the potential for further growth or the need to lock in gains [1]. Financial Performance - VFC reported robust demand for its brands in the third quarter of fiscal 2025, achieving its fourth consecutive quarter of revenue growth, significantly outperforming the Zacks Textile - Apparel industry's growth of 3.7% [1]. - The company's stock closed at $25.51, which is 12.1% below its 52-week high of $29.02, indicating potential for recovery [3]. - VFC's stock is currently trading above its 50-day and 200-day simple moving averages of $23.55 and $18.43, respectively, suggesting positive market sentiment and investor confidence [3]. Strategic Initiatives - VFC's direct-to-consumer (DTC) and wholesale channels showed strong performance, particularly benefiting from holiday season demand for brands like The North Face and Timberland [6]. - The company is actively pursuing its Reinvent transformation program, focusing on brand-building and operational performance improvements, with strategies aimed at cost reduction, balance sheet strengthening, and revitalizing brands like Vans [7]. - VFC has set medium-term financial goals, including an adjusted operating margin of at least 10% and an adjusted gross margin of a minimum of 55% [8]. Cost Management and Growth - VFC is targeting a $300 million run rate in initial gross reinvest cost savings by fiscal 2025, having generated $55 million in savings in the third quarter alone [9]. - The company aims for $500-$600 million in operating income expansion, with a significant portion expected from SG&A expense reductions, aligning with its long-term goal of achieving at least a 10% operating margin by fiscal 2028 [9][10]. Earnings Estimates - The Zacks Consensus Estimate for VFC's earnings per share has seen significant upward revisions, with current quarter estimates increasing by 68.8% to 73 cents and fiscal year estimates rising by 18.9% to $1.07 per share [11]. Investment Outlook - VFC is positioned as a compelling buy opportunity, supported by strong momentum, operational improvements, and a clear path to long-term profitability through its strategic initiatives [13].

Core Viewpoint - VF Corporation is viewed as a compelling turnaround story with significant potential for growth, particularly as it recovers from a challenging period marked by an 80% drop in earnings per share [1][2]. Financial Performance - The analyst projects that VF Corporation's FY28 earnings per share (EPS) will exceed $2.00, compared to a pro-forma FY24 EPS of $0.64, excluding Supreme [2]. - The stock price could potentially reach $40 within 2-3 years, especially considering its peak of around $100 before the pandemic [2]. Debt Management - VF Corporation previously had over $6 billion in net debt, but after selling Supreme for $1.5 billion and other non-core assets, net debt is now approximately $3.3 billion [2]. - The company is expected to continue reducing debt, which will enhance profit and loss performance and provide greater operational flexibility [3]. Management Strategy - CEO Bracken Darrell is implementing a plan focused on improving efficiency and margins, rejuvenating the Vans brand, and reducing debt leverage [1]. Market Performance - As of the last check, VF Corporation shares are trading lower by 0.61% at $24.20 [3].

Core Concept - Vans celebrates the legacy of its iconic Old Skool™ skate shoe through the launch of the Premium Old Skool Music Collection, which draws inspiration from various music eras and genres [1][4] Product Details - The collection features three unique capsules: the first with bold leopard prints and original colorways from the '70s and '80s punk scene, the second inspired by the Warped Tour with classic Checkerboard and flame prints, and the last featuring vibrant colorways that reflect the underground hip hop culture [2] - The Premium Old Skool Build includes refined materials, enhanced cushioning, and improved fit, utilizing 30% biobased Sola Foam ADC insoles for comfort [3] Cultural Impact - Vans collaborates with musicians like The Paranoyds, Voice of Baceprot, Little Simz, and Hi-Tech, who embody the spirit of creativity and cultural narratives, promoting the "Off The Wall" mindset [4] Company Overview - Vans, a brand under VF Corporation, is a leading name in skateboarding and action sports footwear, with a presence in over 100 countries and more than 2,000 retail locations globally [5]

Core Viewpoint - Goldman Sachs analyst Brooke Roach maintains a Neutral rating on VF Corp (VFC) shares and raises the price target from $22 to $25, citing a strong third-quarter performance but a cautious fourth-quarter revenue forecast due to various factors [1]. Group 1: Financial Performance - VFC reported a broad-based third-quarter beat and raised its full-year 2025 free cash flow guidance [1]. - The company achieved year-over-year revenue growth for the first time in nine quarters, driven by growth across all regions and strong performances from The North Face (TNF) and Timberland [2]. - Positive year-over-year sell-through for Vans in the U.S. non-value channel during the holiday season was noted, along with solid gross margin expansion due to easier comparisons to last year's inventory reset, product cost tailwinds, and lower promotional activity [3]. Group 2: Cost Management and Strategy - Greater-than-expected savings in SG&A costs were highlighted, with management on track to achieve approximately $300 million in SG&A run-rate savings by the end of FY25 [4]. - The company is also focused on ongoing debt reduction, aiming to meet its medium-term leverage target of 2.5x or lower by FY28 [4]. - The analyst views the quarter as a significant indication of early progress with VFC's Reinvent plan and expresses optimism about the business's margin trajectory, particularly regarding SG&A [4]. Group 3: Future Outlook - The analyst is looking forward to a more detailed update on the recent performance and future strategy of each brand during the second segment of the company's Investor Day, scheduled for March 6 [5]. - VFC shares are currently trading higher by 4.65% at $26.75 [5].

Group 1 - The article emphasizes a dividend-focused value investment strategy that prioritizes capital preservation and steady income growth [1] - The investment approach involves holding high-quality value stocks that provide meaningful growth and long-term safety [1] Group 2 - The author has a beneficial long position in the shares of VFC, indicating a personal investment interest [2] - The article is presented as a personal opinion and does not constitute investment or tax advice [3]

Core Insights - V.F. Corporation (VFC) reported third-quarter fiscal 2025 results with revenues and earnings exceeding expectations, driven by brand improvements and the Reinvent program [1][2][3] Financial Performance - Adjusted earnings per share increased to 62 cents from 57 cents year over year, surpassing the Zacks Consensus Estimate of 34 cents [2] - Net revenues reached $2.83 billion, a 1.9% year-over-year improvement, exceeding the consensus estimate of $2.75 billion [3] - Gross margin expanded by 150 basis points to 56.3% due to lower product costs and fewer promotions [4] - Adjusted operating margin increased by 360 basis points to 11.4% [4] - Selling, general and administrative costs as a percentage of revenues declined by 220 basis points to 46.5% [4] Stock Performance - Following the positive results, VFC shares rose approximately 3% in pre-market trading, with a 54.4% increase over the past year compared to the industry’s 0.7% growth [5] Revenue Breakdown - Revenues in the Americas rose by 1% year over year, while EMEA revenues also increased by 1% [6] - APAC region revenues grew by 5% year over year [6] - Wholesale revenues advanced by 8%, while direct-to-consumer revenues declined by 3% [8] - Outdoor segment revenues improved by 6% to $1.85 billion, while Active segment revenues declined by 6% to $766.3 million [9] Financial Position - VFC ended the fiscal third quarter with cash and cash equivalents of $1.37 billion and long-term debt of $3.88 billion [11] - Inventories decreased by 14% year over year [11] - The company paid off a $1 billion term loan and expects to retire an additional $750 million in April 2025 [11] Future Outlook - For the fourth quarter of fiscal 2025, management anticipates a revenue decline of 4-6% year over year [13] - The company expects free cash flow to reach $440 million, an increase from the previously mentioned $425 million [14]

Core Insights - VF Corporation's shares declined despite reporting third-quarter earnings that exceeded expectations, with net income of $167.78 million or 43 cents per share, a significant improvement from a loss of $42.45 million in the same quarter last year [1][4] - The company achieved $2.83 billion in revenue, reflecting a year-over-year increase of approximately 2%, surpassing earlier projections of a slight decline [2][4] - CEO Bracken Darrell emphasized the need for improvement in sales and margins, indicating that the company aims for consistent double-digit operating margins and sustainable growth [3] Sales Performance - Sales growth was observed across all international regions, with North Face and Timberland experiencing increases of 5% and 11% respectively, while Vans sales decreased by 9% [4] - For the upcoming fourth quarter, VF Corporation anticipates a revenue decline of 4% to 6% compared to the same period last year, along with a projected adjusted operating loss of up to $30 million [3][4]

Core Insights - VF Corporation's shares increased after reporting third-quarter earnings that exceeded expectations, with sales growth across all international regions [1][4] - The company reported a net income of $167.78 million, or 43 cents per share, for the third quarter of fiscal 2025, compared to a loss of $42.45 million in the same quarter last year [1] - Revenue for the quarter was $2.83 billion, reflecting a year-over-year increase of approximately 2%, surpassing previous projections of a slight decline [2] Sales Performance - Sales growth was observed globally, with North Face and Timberland experiencing increases of 5% and 11% respectively, while Vans sales declined by 9% [4] - The stock price of VF Corporation rose about 1% on the reporting day, marking an overall increase of nearly 60% over the past 12 months [4] Future Outlook - The CEO indicated that there is still work to be done to achieve consistent double-digit operating margins and sustainable top-line growth, emphasizing ongoing transformation efforts [3] - For the fourth quarter, the company anticipates a revenue decline of 4% to 6% compared to the same period last year, with a projected adjusted operating loss of up to $30 million [3]