VF Guides Q3 Revenue Below Consensus as Vans Wholesale Recovery Slips to Q4
VFC sits 32% above its 52-week low of $12.455.
Summary
VF's third-quarter revenue outlook landed well short of expectations: growth of 3% or better implies about $2.78 billion versus the $2.9 billion analysts modeled. The culprit is Vans, where second-quarter revenue fell 9.8% on continued wholesale destocking. CEO Bracken Darrell said new Vans product reaches wholesale accounts six to nine months behind direct channels, pushing the wholesale rebound mostly into the fourth quarter. Direct-to-consumer Vans sales turned positive for the first time in nearly five years, and management still expects Vans revenue to decline at most 2% in the second half. The quarter itself was strong — adjusted EPS of 70 cents beat the 54-cent consensus, net income rose to $285.3 million from $189.8 million, and North Face and Timberland each grew 4%. Full-year guidance was reaffirmed at 2% or better revenue growth and roughly 8% operating margin. The stock was down 2.2% at $16.65, a muted reaction that suggests the beat was already priced after this morning's release and 8-K.
At the time of this announcement, VFC was trading at $16.50 on NYSE in the Trade & Services sector, with a market capitalization of approximately $6.5B. The 52-week trading range was $12.46 to $22.27. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.