VF Corporation Reports In-line Earnings, Misses on Revenue



Series snapshot

VF Corporation (VFC) reported its results for fiscal 1Q17 on April 28, 2017. The results relate to the three-month period that ended April 1, 2017.

The company reported in-line earnings but missed on Wall Street’s revenue estimate. EPS (earnings per share) fell 8.0% YoY (year-over-year) to $0.55. Total revenue from continued operations fell 1.9% to $2.6 billion. Analysts on average were looking for $2.7 billion in total sales.

Investors were left unimpressed by the company’s results. VFC stock fell 5.6% to close at $54.63.

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Valuations summary and stock recommendations

VFC is trading at a one-year forward PE (price-to-earnings) ratio of 18.0x compared to a three-year average of 20.0x. It continues to trade at a premium to PVH (PVH), Hanesbrands (HBI), and Gap (GPS), which are trading at 13.7x, 11.1x, and 13.2x, respectively.

VFC stock offers a dividend yield of 3.2%, which is better than PVH’s at 0.20% and Hanesbrands’ at 2.7%, but lower than Gap’s at 3.6%.

VFC is covered by 22 Wall Street analysts. About 27.0% of them have recommended a “buy” for the stock, 64.0% have recommended a “hold,” and 6.0% have recommended a “sell.”

About VFC

Established in 1899, VF Corporation is one of the largest global apparel companies in the world. It owns iconic denim brands Lee and Wrangler and has a portfolio of ~35 brands. It offers a wide array of products such as casual outerwear, footwear, jeanswear, backpacks, luggage, sportswear, and occupational and performance apparel.

With a market capitalization of $22.7 billion as of April 28, 2017, VFC has a weight of 2.0% in the ProShares S&P 500 Dividend Aristocrats (NOBL).

What’s this series all about?

This series is an earnings overview of VF Corporation’s 1Q17 results. We’ll be looking at the company’s financial performance during the quarter and Wall Street’s recommendations. We’ll also evaluate its stock performance and look at its current valuation.


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