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Factors Likely to Influence V.F. Corp (VFC) In Q3 Earnings

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·5 min read
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V.F. Corporation VFC is slated to report third-quarter fiscal 2022 results on Jan 28, before the opening bell. The lifestyle apparel designer is expected to have witnessed earnings and sales growth in the to-be-reported quarter.

The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $1.21 per share, which suggests substantial growth of 30.1% from 93 cents reported in the year-ago quarter. Earnings estimates have been unchanged in the past 30 days. The consensus mark for revenues is pegged at $3.61 billion, indicating growth of 21.4% from that reported in the year-ago quarter.

The company reported a negative earnings surprise of 5.1% in the last reported quarter. However, its earnings surpassed the Zacks Consensus Estimate by 32.9%, on average, in the trailing four quarters.

V.F. Corporation Price and EPS Surprise

V.F. Corporation Price and EPS Surprise
V.F. Corporation Price and EPS Surprise

V.F. Corporation price-eps-surprise | V.F. Corporation Quote

Key Factors to Note

V.F. Corp has been witnessing positive demand trends, which are expected to have continued in the fiscal third quarter. Contribution from the Supreme brand on the back of Supreme’s strong follower base among the younger generation also bodes well. Growth in the EMEA and North America regions, as well as strength in its largest brands, including The Vans, The North Face, Timberland and Dickies, should have aided the top line in the fiscal third quarter.

The company remains on track with the digital and hyper-digital business model transformation, which has been boosting the top line for the past few quarters. Buy online, pickup in store, and curbside delivery options have been aiding digital sales. The digital business is also expected to have benefited from the sturdy performance across almost every brand in the portfolio, including the pure-play digital wholesale partners.

However, management continues to reel under the pandemic-led disruptions. Owing to the resurgence of COVID cases, manufacturing capacity constraints, port delays, equipment availability and other logistics challenges have been dragging the company’s performance. Higher freight costs are also likely to have acted as deterrents.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for V.F. Corp this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

V.F. Corp has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.

Stocks With Favorable Combination

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

Crocs CROX has an Earnings ESP of +7.09% and it currently sports a Zacks Rank of 1. The company is likely to register an increase in the bottom line when it reports fourth-quarter 2021. The Zacks Consensus Estimate for quarterly earnings has moved up 36% to $1.87 per share in the past 30 days, suggesting a 76.4% rise from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

Crocs’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $585.2 million, which suggests a rise of 42.2% from the figure reported in the prior-year quarter. CROX has delivered an earnings beat of 41.6%, on average, in the trailing four quarters.

Oxford Industries OXM has an Earnings ESP of +2.97% and it currently flaunts a Zacks Rank of 1. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings has moved north by 2.3% to $1.35 per share in the past 30 days, indicating a 938.5% rise from the year-ago quarter’s reported number.

Oxford Industries’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $295.3 million, which suggests a rise of 33.4% from the figure reported in the prior-year quarter. OXM has delivered an earnings beat of 96.7%, on average, in the trailing four quarters.

Gildan Activewear GIL currently has an Earnings ESP of +9.57% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports fourth-quarter 2021. The Zacks Consensus Estimate for quarterly earnings moved 3.6% to 58 cents per share, suggesting 28.9% growth from the year-ago quarter’s reported number.

Gildan Activewear’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $731 million, which suggests a rise of 5.9% from the figure reported in the prior-year quarter. GIL has delivered an earnings beat of 85%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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V.F. Corporation (VFC) : Free Stock Analysis Report

Crocs, Inc. (CROX) : Free Stock Analysis Report

Gildan Activewear, Inc. (GIL) : Free Stock Analysis Report

Oxford Industries, Inc. (OXM) : Free Stock Analysis Report

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