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V.F. Corp (VFC) Gears Up for Q1 Earnings: Things to Note
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V.F. Corporation (VFC - Free Report) is likely to register bottom and top-line declines year over year when it posts first-quarter fiscal 2025 results on Aug 6 after the closing bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.9 billion, indicating an 11.3% decline from the prior-year quarter’s figure.
The consensus estimate for earnings is pegged at a loss of 35 cents per share, which compares unfavorably with a loss of 15 cents a share reported in the year-ago quarter. The metric has remained stable in the past 30 days.
V.F. Corp has a trailing four-quarter negative earnings surprise of 836.6%, on average. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by a sharp margin.
Key Factors to Note
V.F. Corp’s quarterly results are likely to be hurt by a tough operating environment and dismal wholesale performance. The company has also been witnessing sluggishness in the Americas region and Vans brand for a while now. Its wholesale business, mainly in the United States, has been witnessing challenges as its major partners have been taking a more cautious approach to forward orders. This, coupled with elevated promotional activity and higher costs, is likely to have dented the bottom-line performance. We anticipate sales at Vans brand and the Americas region to decline 16.8% each year over year. Our model indicates a fall of 7.6% in wholesale revenues.
Management, in its last earnings call, highlighted that revenues will be challenged in the quarter under review. With respect to the gross margin, it had expected year-over-year margin erosion as the company has been working on the residual excess inventory stemming from the earlier cleanup actions.
On the flip side, the company’s transformation program, Reinvent, which targets enhancing focus on brand-building and improving the operating performance, appears encouraging. The plan focuses on four objectives, including improving the North America performance, Vans’ turnaround, reducing costs and strengthening the balance sheet. The company has been managing costs effectively. Our model expects a drop of 2.8% in selling, general and administrative expenses for the fiscal first quarter.
The Zacks Model
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. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
H is likely to register bottom and top-line growth when it reports second-quarter results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.8 billion, which indicates 3% growth from the prior-year quarter.
The consensus estimate for H’s earnings is pegged at $1.29 per share, which implies 57.3% growth from the year-ago quarter's actual. H has a trailing four-quarter earnings surprise of 20.3%, on average.
Ralph Lauren (RL - Free Report) currently has an Earnings ESP of +0.76% and a Zacks Rank of 3. The company is expected to register an increase in the bottom and top lines when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.65 indicates a rise of 83.3% from the year-ago quarter.
The consensus mark for RL’s revenues is pegged at $1.55 billion, which implies an increase of 0.8% from the year-ago quarter. RL has a trailing four-quarter earnings surprise of 18.7%, on average.
Disney (DIS - Free Report) currently has an Earnings ESP of +0.83% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports fiscal second-quarter results. The Zacks Consensus Estimate for quarterly revenues is pegged at $22.9 billion, which indicates an increase of 2.4% from the prior-year quarter.
The consensus estimate for the quarterly earnings per share of $1.20 indicates a rise of 16.5% from the year-ago quarter. DIS has a trailing four-quarter earnings surprise of 15.1%, on average.
Image: Bigstock
V.F. Corp (VFC) Gears Up for Q1 Earnings: Things to Note
V.F. Corporation (VFC - Free Report) is likely to register bottom and top-line declines year over year when it posts first-quarter fiscal 2025 results on Aug 6 after the closing bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.9 billion, indicating an 11.3% decline from the prior-year quarter’s figure.
The consensus estimate for earnings is pegged at a loss of 35 cents per share, which compares unfavorably with a loss of 15 cents a share reported in the year-ago quarter. The metric has remained stable in the past 30 days.
V.F. Corp has a trailing four-quarter negative earnings surprise of 836.6%, on average. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by a sharp margin.
Key Factors to Note
V.F. Corp’s quarterly results are likely to be hurt by a tough operating environment and dismal wholesale performance. The company has also been witnessing sluggishness in the Americas region and Vans brand for a while now. Its wholesale business, mainly in the United States, has been witnessing challenges as its major partners have been taking a more cautious approach to forward orders. This, coupled with elevated promotional activity and higher costs, is likely to have dented the bottom-line performance. We anticipate sales at Vans brand and the Americas region to decline 16.8% each year over year. Our model indicates a fall of 7.6% in wholesale revenues.
Management, in its last earnings call, highlighted that revenues will be challenged in the quarter under review. With respect to the gross margin, it had expected year-over-year margin erosion as the company has been working on the residual excess inventory stemming from the earlier cleanup actions.
On the flip side, the company’s transformation program, Reinvent, which targets enhancing focus on brand-building and improving the operating performance, appears encouraging. The plan focuses on four objectives, including improving the North America performance, Vans’ turnaround, reducing costs and strengthening the balance sheet. The company has been managing costs effectively. Our model expects a drop of 2.8% in selling, general and administrative expenses for the fiscal first quarter.
The Zacks Model
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. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
V.F. Corporation Price and EPS Surprise
V.F. Corporation price-eps-surprise | V.F. Corporation Quote
V.F. Corp has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell).
Stocks With the Favorable Combination
Here are three companies, which according to our model, have the right combination of elements to post an earnings beat this season:
Hyatt Hotels (H - Free Report) currently has an Earnings ESP of +48.96% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
H is likely to register bottom and top-line growth when it reports second-quarter results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.8 billion, which indicates 3% growth from the prior-year quarter.
The consensus estimate for H’s earnings is pegged at $1.29 per share, which implies 57.3% growth from the year-ago quarter's actual. H has a trailing four-quarter earnings surprise of 20.3%, on average.
Ralph Lauren (RL - Free Report) currently has an Earnings ESP of +0.76% and a Zacks Rank of 3. The company is expected to register an increase in the bottom and top lines when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.65 indicates a rise of 83.3% from the year-ago quarter.
The consensus mark for RL’s revenues is pegged at $1.55 billion, which implies an increase of 0.8% from the year-ago quarter. RL has a trailing four-quarter earnings surprise of 18.7%, on average.
Disney (DIS - Free Report) currently has an Earnings ESP of +0.83% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports fiscal second-quarter results. The Zacks Consensus Estimate for quarterly revenues is pegged at $22.9 billion, which indicates an increase of 2.4% from the prior-year quarter.
The consensus estimate for the quarterly earnings per share of $1.20 indicates a rise of 16.5% from the year-ago quarter. DIS has a trailing four-quarter earnings surprise of 15.1%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.