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V.F. (VFC) Reliance on International Sales: What Investors Need to Know
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Have you looked into how V.F. (VFC - Free Report) performed internationally during the quarter ending June 2024? Considering the widespread global presence of this maker of brands such as Vans, North Face and Timberland, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.
While delving into VFC's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The company's total revenue for the quarter amounted to $1.91 billion, marking a decrease of 8.6% from the year-ago quarter. We will next turn our attention to dissecting VFC's international revenue to get a clearer picture of how significant its operations are outside its main base.
Unveiling Trends in VFC's International Revenues
Asia-Pacific generated $309.7 million in revenues for the company in the last quarter, constituting 16.2% of the total. This represented a surprise of +8.23% compared to the $286.15 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia-Pacific accounted for $377.7 million (15.9%), and in the year-ago quarter, it contributed $318.2 million (15.3%) to the total revenue.
Europe accounted for 29.0% of the company's total revenue during the quarter, translating to $552.9 million. Revenues from this region represented a surprise of -6.8%, with Wall Street analysts collectively expecting $593.25 million. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $869.9 million (36.7%) and $584.3 million (28%) to the total revenue, respectively.
Anticipated Revenues in Overseas Markets
The current fiscal quarter's total revenue for V.F. as projected by Wall Street analysts, is expected to reach $2.84 billion, reflecting a decline of 6.3% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Asia-Pacific is anticipated to contribute 15.1% or $428.48 million and Europe 34.2% or $972.88 million.
For the full year, the company is expected to generate $10.21 billion in total revenue, down 2.3% from the previous year. Revenues from Asia-Pacific and Europe are expected to constitute 15.5% ($1.58 billion) and 33.5% ($3.42 billion) of the total, respectively.
Key Takeaways
The dependency of V.F. on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.
In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
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V.F. (VFC) Reliance on International Sales: What Investors Need to Know
Have you looked into how V.F. (VFC - Free Report) performed internationally during the quarter ending June 2024? Considering the widespread global presence of this maker of brands such as Vans, North Face and Timberland, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.
While delving into VFC's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The company's total revenue for the quarter amounted to $1.91 billion, marking a decrease of 8.6% from the year-ago quarter. We will next turn our attention to dissecting VFC's international revenue to get a clearer picture of how significant its operations are outside its main base.
Unveiling Trends in VFC's International Revenues
Asia-Pacific generated $309.7 million in revenues for the company in the last quarter, constituting 16.2% of the total. This represented a surprise of +8.23% compared to the $286.15 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia-Pacific accounted for $377.7 million (15.9%), and in the year-ago quarter, it contributed $318.2 million (15.3%) to the total revenue.
Europe accounted for 29.0% of the company's total revenue during the quarter, translating to $552.9 million. Revenues from this region represented a surprise of -6.8%, with Wall Street analysts collectively expecting $593.25 million. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $869.9 million (36.7%) and $584.3 million (28%) to the total revenue, respectively.
Anticipated Revenues in Overseas Markets
The current fiscal quarter's total revenue for V.F. as projected by Wall Street analysts, is expected to reach $2.84 billion, reflecting a decline of 6.3% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Asia-Pacific is anticipated to contribute 15.1% or $428.48 million and Europe 34.2% or $972.88 million.For the full year, the company is expected to generate $10.21 billion in total revenue, down 2.3% from the previous year. Revenues from Asia-Pacific and Europe are expected to constitute 15.5% ($1.58 billion) and 33.5% ($3.42 billion) of the total, respectively.
Key Takeaways
The dependency of V.F. on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
At present, V.F. holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Exploring Recent Trends in V.F.'s Stock Price