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V.F. Corp (VFC) to Post Q2 Earnings: What's in the Offing?
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V.F. Corporation (VFC - Free Report) is likely to register top and bottom-line decreases from the year-ago fiscal quarter’s respective figures when it reports second-quarter fiscal 2023 earnings on Oct 26, after the closing bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $3,102 million, indicating a 3% dip from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings in the fiscal second quarter is pegged at 74 cents per share, suggesting a 33.3% decline from the year-ago fiscal quarter’s reported number. Earnings estimates have moved 25.3% south in the past 30 days.
We note that V.F. Corp delivered a negative earnings surprise of 6.1% in the trailing four quarters, on average.
Key Factors to Note
On Sep 28, V.F. Corp issued guidance for the fiscal quarter under review. For second-quarter fiscal 2023, management projected revenue growth in a low-single digit in constant dollars and adjusted earnings of 70-75 cents, indicating a fall from $1.11 delivered in the year-earlier fiscal quarter. Management stated that the ongoing uncertainty, weaker-than-anticipated back-to-school performance at Vans and higher inventory causing increased promotions in North America were concerns.
Moreover, VFC witnesses persistent sluggishness in the APAC region, particularly in China, due to drab traffic stemming from COVID-related lockdowns, local regulations, travel restrictions and consumer anxiety. Also, elevated SG&A costs and rising freight expenses related to supply-chain disruptions remain headwinds. Continued congestion and disruption from labor shortages and equipment constraints across the logistics network are expected to have hurt the bottom line.
On the positive front, V.F. Corp has been seeing strength across its brands for a while. In addition, both EMEA and North America regions are performing well. VFC is benefiting from Supreme’s strong follower base among the younger generation. These tailwinds might have aided the quarterly performance.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for V.F. Corp this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
V.F. Corp has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this season:
BJ's Wholesale (BJ - Free Report) has an Earnings ESP of +2.98% and a Zacks Rank #1, currently. BJ is likely to register top-line growth from the prior-year fiscal quarter’s reading when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.66 billion, suggesting 9.3% growth from the figure reported in the prior-year fiscal quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale’s third-quarter fiscal earnings is pegged at 80 cents, suggesting a 12.1% decline from 91 cents reported in the year-ago fiscal quarter. The consensus mark has moved up a penny in the past 30 days.
Costco (COST - Free Report) currently has an Earnings ESP of +0.53% and a Zacks Rank of 3. COST is expected to register top and bottom-line growth from the respective year-ago fiscal quarter’s tallies when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $54.98 billion, suggesting growth of 9.2% from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for Costco’s quarterly earnings has moved up 2.3% in the past 30 days. The consensus estimate for earnings suggests 6.1% growth from the year-ago fiscal quarter’s reported number. COST delivered an earnings beat of 7.7%, on average, in the trailing four quarters.
Ralph Lauren (RL - Free Report) currently has an Earnings ESP of +0.08% and a Zacks Rank #3. RL is anticipated to register top-line growth from the prior-year fiscal quarter’s reported figure when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.6 billion, indicating an improvement of 3.7% from the figure reported in the prior-year fiscal quarter.
However, the Zacks Consensus Estimate for Ralph Lauren’s earnings of $2.07 per share has moved down 1.4% in the past 30 days. The consensus estimate suggests a rise of 21% from 99 cents reported in the year-ago fiscal quarter. RL delivered an earnings beat of 34.9%, on average, in the trailing four quarters.
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V.F. Corp (VFC) to Post Q2 Earnings: What's in the Offing?
V.F. Corporation (VFC - Free Report) is likely to register top and bottom-line decreases from the year-ago fiscal quarter’s respective figures when it reports second-quarter fiscal 2023 earnings on Oct 26, after the closing bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $3,102 million, indicating a 3% dip from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings in the fiscal second quarter is pegged at 74 cents per share, suggesting a 33.3% decline from the year-ago fiscal quarter’s reported number. Earnings estimates have moved 25.3% south in the past 30 days.
We note that V.F. Corp delivered a negative earnings surprise of 6.1% in the trailing four quarters, on average.
Key Factors to Note
On Sep 28, V.F. Corp issued guidance for the fiscal quarter under review. For second-quarter fiscal 2023, management projected revenue growth in a low-single digit in constant dollars and adjusted earnings of 70-75 cents, indicating a fall from $1.11 delivered in the year-earlier fiscal quarter. Management stated that the ongoing uncertainty, weaker-than-anticipated back-to-school performance at Vans and higher inventory causing increased promotions in North America were concerns.
Moreover, VFC witnesses persistent sluggishness in the APAC region, particularly in China, due to drab traffic stemming from COVID-related lockdowns, local regulations, travel restrictions and consumer anxiety. Also, elevated SG&A costs and rising freight expenses related to supply-chain disruptions remain headwinds. Continued congestion and disruption from labor shortages and equipment constraints across the logistics network are expected to have hurt the bottom line.
On the positive front, V.F. Corp has been seeing strength across its brands for a while. In addition, both EMEA and North America regions are performing well. VFC is benefiting from Supreme’s strong follower base among the younger generation. These tailwinds might have aided the quarterly performance.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for V.F. Corp this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
V.F. Corp has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this season:
BJ's Wholesale (BJ - Free Report) has an Earnings ESP of +2.98% and a Zacks Rank #1, currently. BJ is likely to register top-line growth from the prior-year fiscal quarter’s reading when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.66 billion, suggesting 9.3% growth from the figure reported in the prior-year fiscal quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale’s third-quarter fiscal earnings is pegged at 80 cents, suggesting a 12.1% decline from 91 cents reported in the year-ago fiscal quarter. The consensus mark has moved up a penny in the past 30 days.
Costco (COST - Free Report) currently has an Earnings ESP of +0.53% and a Zacks Rank of 3. COST is expected to register top and bottom-line growth from the respective year-ago fiscal quarter’s tallies when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $54.98 billion, suggesting growth of 9.2% from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for Costco’s quarterly earnings has moved up 2.3% in the past 30 days. The consensus estimate for earnings suggests 6.1% growth from the year-ago fiscal quarter’s reported number. COST delivered an earnings beat of 7.7%, on average, in the trailing four quarters.
Ralph Lauren (RL - Free Report) currently has an Earnings ESP of +0.08% and a Zacks Rank #3. RL is anticipated to register top-line growth from the prior-year fiscal quarter’s reported figure when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.6 billion, indicating an improvement of 3.7% from the figure reported in the prior-year fiscal quarter.
However, the Zacks Consensus Estimate for Ralph Lauren’s earnings of $2.07 per share has moved down 1.4% in the past 30 days. The consensus estimate suggests a rise of 21% from 99 cents reported in the year-ago fiscal quarter. RL delivered an earnings beat of 34.9%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.