V F Corporation (VFC, Financial) has experienced significant bearish options activity, with 9,552 put contracts trading, a volume that is three times the typical level. The most active options include the September 2025 $11 puts and June 2025 $12.5 calls, together comprising nearly 8,500 contracts in volume.
The market's sentiment towards VFC appears cautious, as indicated by a Put/Call Ratio of 3.87, suggesting more interest in puts over calls. Furthermore, the at-the-money implied volatility (ATM IV) for the stock has surged by about 14 points in just one day, reflecting heightened expectations of price movement.
Investors are closely monitoring these developments as they prepare for V F Corporation's upcoming earnings report, which is scheduled for release on May 21st. The increased options activity and volatility suggest market participants are positioning themselves for potential volatility tied to the earnings announcement.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for VF Corp (VFC, Financial) is $20.02 with a high estimate of $34.00 and a low estimate of $9.00. The average target implies an upside of 76.30% from the current price of $11.36. More detailed estimate data can be found on the VF Corp (VFC) Forecast page.
Based on the consensus recommendation from 24 brokerage firms, VF Corp's (VFC, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for VF Corp (VFC, Financial) in one year is $18.02, suggesting a upside of 58.7% from the current price of $11.355. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the VF Corp (VFC) Summary page.
VFC Key Business Developments
Release Date: January 29, 2025
- Revenue Growth: Up 2% in Q3.
- Gross Margin: Increased by 150 basis points to 56.3%.
- Operating Margin: Improved by 360 basis points to 11.4%.
- Net Debt Reduction: Down nearly $2 billion compared to last year.
- SG&A Savings: $55 million in Q3, contributing to a $300 million run rate in cost savings.
- Adjusted Operating Income: Up 49% to $324 million.
- Adjusted Diluted EPS: $0.62, up from $0.45 last year.
- Inventory Reduction: Down 14% versus last year.
- North Face Revenue: Up 5% in Q3.
- Timberland Revenue: Up 12% in Q3.
- Vans Revenue: Down 8%, showing improvement from the previous quarter.
- Free Cash Flow Guidance: Raised to $440 million for the full year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- VF Corp (VFC, Financial) reported a 2% revenue growth in Q3, exceeding expectations and showing significant improvement in profitability.
- The North Face and Timberland brands experienced growth, with The North Face up 5% and Timberland up 12% year-over-year.
- The company achieved a gross margin increase of 150 basis points and an operating margin increase of 360 basis points to over 11%.
- Net debt was reduced by nearly $2 billion, demonstrating strong progress in strengthening the balance sheet.
- VF Corp (VFC) is on track to deliver $300 million in gross cost savings, with an additional $500 million to $600 million in operating income expansion targeted by fiscal year 2028.
Negative Points
- Vans brand performance was down 8% in Q3, although this was an improvement from the previous quarter.
- The company anticipates a deceleration in Q4 revenue growth due to a shift in wholesale performance and DTC outperformance in Q3.
- The Dickies brand continues to face challenges, described as a 'deep turnaround' with significant potential yet to be realized.
- The APAC region saw a significant decline in Vans sales, down 31%, indicating regional challenges.
- The company expects Q4 revenue to be down 4% to 6% on a reported dollar basis, with FX headwinds contributing to this outlook.
