VF Corp drops on surprise Q4 loss, revenue miss

Timberland Bancorp

23/05/2024 12:55

** Apparel retailer VF Corp's shares  VFC.N  fall ~15% to
$10.46 in premarket trading 
    ** VFC's Q4 revenue fell to $2.37 billion from a year
earlier due to drop in its brands' sales; Analysts on average
had estimated $2.41 billion
    ** VFC posts quarterly loss of 32 cents/shr, compared with
estimates of 1 cent/shr profit - LSEG data
    ** Sales of VFC's major brands Vans down 26%, The North Face
slip 5%, Timberland drop 14% and Dickies falls 15% YoY
    ** Other apparel retailers like Under Armour  UAA.N , Calvin
Klein-owner PVH Corp  PVH.N , and Tapestry  TPR.N  are also
facing choppy demand and strained spending by consumers
    ** Shares of Under Armour down 1.3% premarket
    ** At least 10 brokerages, including Citigroup, Evercore
ISI, Guggenheim and TD Cowen, cut VFC price targets
    ** "We think it will continue to take time to turn around
key brands (Vans, TNF) and get leverage back to a more
acceptable level" - BofA Global Research
    ** Four of 23 brokerages rate the stock "buy" or higher, 17
"hold" and two "sell" or lower; their median PT is $13.5
    ** Up to last close, stock had fallen 31.41% 

 (Reporting by Nikhil Sharma in Bengaluru)
 ((nikhil.sharma@thomsonreuters.com))