Stock Market Penalizes VF Corporation Stock for Weak 1Q17 Results

VF Corporation (VFC) stock fell after the company posted mixed 1Q17 results. It fell a huge 5.6% to close at $54.63 after the results on April 28, 2017. It fell 3.3% more a day after the results, converting the company’s YTD (year-to-date) profits into losses. VFC is currently sitting at YTD losses of ~1.0%. That compares to an 8.4% rise before the results were announced.

After being in the red through most of 2016, most apparel stocks still remain under pressure. Under Armour (UAA), Lululemon Athletica (LULU), Michael Kors (KORS), and Ralph Lauren (RL) are among the biggest YTD losers, falling 27.0%, 21.0%, 15.0%, and 12.0%, respectively. On the other hand, Gap (GPS) and PVH (PVH) rose 11.0% and 15.4%, respectively, after posting better-than-expected results.

The S&P 500 Apparel and Accessories Index has fallen ~4.0% YTD. In comparison, the S&P 500 Index (SPX) has risen ~6.7% to date.

If you want exposure to VFC, you could consider the VanEck Vectors Morningstar Wide Moat ETF (MOAT), which invests 2.0% of its portfolio in VFC.

In the next part of this series, we’ll look at VFC’s dividend and share buyback policy.