VF Corp Q2 revenue beats estimates on brand performance

Overview

• U.S. apparel and footwear company's fiscal Q2 revenue beat analyst expectations, up 1% ex Dickies

• Adjusted EPS for fiscal Q2 beat analyst expectations

• Company reported strong operating income and gross margin expansion in fiscal Q2

Outlook

• VF Corp reaffirms FY27 revenue growth of 2% or better in constant currency

• Company expects FY27 adjusted operating margin of about 8%

• VF Corp sees FY27 free cash flow at $515M or higher

Result Drivers

• BRAND PERFORMANCE - The North Face and Timberland delivered consistent growth, Altra grew over 40%, driven by product innovation and marketing

• VANS TURNAROUND - Company said global DTC for Vans returned to growth and expects wholesale improvement in H227

• MARGIN EXPANSION - VF reported continued gross margin expansion, contributing to improved operating income

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 10 "strong buy" or "buy", 13 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories peer group is "buy."

• Wall Street's median 12-month price target for VF Corp is $17.00, about 0.2% above its October 27 closing price of $17.03

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)