VF Corporation Earnings Report

VF Corporation (NYSE:VFC), the parent company of The North Face and Vans, witnessed its stock soar 18% following the release of its second-quarter earnings, surpassing expectations and offering a positive forecast for the third quarter.

Financial Performance

• Adjusted Earnings per Share (EPS): $0.60
  • Exceeded analyst estimate of $0.38.
• Revenue: $2.76 billion
  • Slightly above the consensus estimate of $2.73 billion, although this reflects a 6% year-over-year (YoY) decline.

Brand Performance

• The North Face: 3% decline in sales, improved from the previous quarter.
• Vans: 11% drop in sales, also an improvement from the prior quarter.

Bracken Darrell, President and CEO, highlighted, "Our results in the quarter met our expectations and reflect a sequential and broad-based improvement in year-on-year trends. At the same time, we made further progress on our four Reinvent priorities and we are on track to reach our previously announced $300 million savings target by the end of FY25."

Margins

• Gross Margin: Improved by 120 basis points to 52.2% YoY.
• Operating Margin: Decreased by 210 basis points to 9.9%.

Future Guidance

Looking forward, VF Corp projects third-quarter revenue between $2.7 billion and $2.75 billion, indicating a 1% to 3% YoY decline, slightly below the analyst consensus of $2.77 billion.

Dividend Announcement

The company also declared a quarterly dividend of $0.09 per share, payable on December 18, 2024, for shareholders of record as of December 10, 2024.