VF Corporation’s price movement
VF Corporation (VFC) has a market cap of $25.6 billion. Its stock rose by 1.4% to close at $61.49 per share on June 30, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were -5.4%, -0.54%, and -0.08%, respectively, on the same day. VFC is trading 1.5% below its 20-day moving average, 1.4% below its 50-day moving average, and 3.0% below its 200-day moving average.
Related ETF and peers
The PowerShares DWA Momentum Portfolio (PDP) invests 1.0% of its holdings in VF Corporation. The ETF tracks an index of 100 US-listed large- and mid-cap companies selected and weighted by relative stock performance. The YTD price movement of PDP was 2.0% on June 30.
The market caps of VF Corporation’s competitors are as follows:
Latest news on VF Corporation
VF Corporation has entered into a definitive agreement to sell its Contemporary Brands businesses, which include 7 for All Mankind, Splendid, and Ella Moss, to Delta Galil Industries for $120 million, subject to various working capital adjustments. The transaction is expected to close in the third quarter of 2016.
VF Corporation’s performance in fiscal 1Q16
VF Corporation reported fiscal 1Q16 revenues of $2,839.3 million, a rise of 0.07% compared to total revenues of $2,837.3 million in fiscal 1Q15.
Its net income and EPS (earnings per share) fell to $260.3 million and $0.61, respectively, in fiscal 1Q16 compared to $288.7 million and $0.67, respectively, in fiscal 1Q15.
VFC’s cash and cash equivalents fell by 38.0%, and its inventories rose by 9.3% in fiscal 1Q16 compared to fiscal 4Q15. Its current ratio fell to 1.6x, and its debt-to-equity ratio rose to 1.0x in fiscal 1Q16, compared to 2.1x and 0.79x, respectively, in fiscal 4Q15.
The company has made the following projections for fiscal 2016:
- It expects revenue to increase at a mid-single-digit rate, which includes an ~1% negative impact from changes in foreign currency.
- The company expects its gross margin to improve by about 0.50% to 48.8%, which includes about 0.70% of headwinds from changes in foreign currency.
- It expects to see an operating margin of 14.4%, which includes a negative foreign currency impact of ~0.70%.
- It expects EPS to grow by 11% on a currency-neutral basis.
- It expects cash flow from operations to reach $1.3 billion.
In the next part of this series, we’ll discuss Ball Corporation.