Nucor earnings beat by $0.08, revenue fell short of estimates
On Thursday, Williams Trading analyst Sam Poser reiterated a Sell rating on VF Corp (NYSE:VFC) with a price target of $15.00, well below the current market cap of $10.35 billion. Poser expressed concerns regarding potential over shipments of The North Face (TNF) and Timberland (TBL) brands in the upcoming Fall 2025 season. He cautioned that this could lead to increased promotional activities and lower margins in the second half of 2026, which may negatively impact demand going into fiscal year 2027. According to InvestingPro analysis, VFC is currently trading above its Fair Value, supporting the cautious stance.
The analyst pointed out that Vans Americas wholesale performance did not align with actual consumer demand, reflected in VFC’s concerning 9.54% revenue decline over the last twelve months. Poser emphasized the importance for brand managers of TNF and TBL to accurately assess real consumer demand and not solely rely on orders from wholesale buyers for Fall 2025 deliveries. He warned against equating strong sell-through rates this winter with future demand, suggesting that buyers often overestimate sales potential based on past sellouts.
Poser also highlighted VF Corp’s significant net debt, which, despite being reduced by approximately $2 billion year-over-year, still stands at over $4.6 billion. With total debt of $7.38 billion and an Altman Z-Score of 1.75, InvestingPro data suggests potential financial distress. He indicated that this financial position could influence wholesale merchants to mistake orders for genuine consumer interest. Drawing from his experience as a former buyer for large retailers, Poser noted that buyer estimations of demand for items that previously sold out do not always translate into actual sales.
The analyst’s comments reflect a cautious stance on VF Corp’s future performance, particularly in terms of inventory management and the interpretation of wholesale orders as consumer demand. With a gross profit margin of 52.21% and negative net income of $403.78 million, Poser’s insights suggest that VF Corp may face challenges in aligning supply with true market appetite, which could have implications for the company’s profitability and stock valuation in the forthcoming fiscal periods. For deeper insights into VF Corp’s financial health and valuation metrics, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, VF Corp has reported significant third-quarter results that surpassed expectations. The company announced adjusted earnings per share at $0.62, beating the analyst estimate of $0.33, and a total revenue of $2.83 billion, surpassing the consensus estimate of $2.75 billion. Following these developments, multiple analyst firms have adjusted their stock targets for VF Corp. Truist Securities raised their target to $24 while maintaining a Hold rating, Telsey Advisory Group increased their target to $27, Citi analysts elevated their target to $30, and Stifel analysts set their target at $35.
These are recent developments that investors should note. VF Corp also raised its full-year free cash flow guidance to $440 million from a previous forecast of $425 million. However, the company anticipates a decline in revenue of 4% to 6% year-over-year for the fourth quarter. Despite this, analysts from both Citi and Stifel predict potential opportunities for the company.
In addition to these financial updates, VF Corp’s Board of Directors declared a quarterly dividend of $0.09 per share. The company continues to maintain its tradition of shareholder returns, demonstrating long-term financial stability. These recent developments provide valuable insights for investors keeping an eye on VF Corp’s performance and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.