VF Corp. stock downgraded by Telsey Advisory on Q1 miss

Telsey Advisory Group's Dana Telsey has downgraded VF Corporation (VFC) to Market Perform from Outperform. Telsey calls the company's first quarter results a "sizable" miss, with revenue, gross margins, and operating expenses falling short of consensus.

Josh Lipton and Julie Hyman discuss VF Corporation's strategic portfolio review and the brands weighing on the company's performance.

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This article was written by Gabriel Roy

Video Transcript

Well, let's get to some calls.

The Day Telsey Advisory Group.

They downgrade VF Corp from outperform to market perform today.

So VF Corps, obviously owner of Vans, Dickie's Timberland, uh, report a loss and another core of falling sales as we we talked about yesterday.

Julie, when that print cross Telsey is Dana Telsey, and Dana has been doing this a long time.

So when she speaks about retail, people do listen did cut tomorrow Reform slashes her price target to 13 says the results were disappointing, with revenue, gross margin and operating expenses coming in short, uh, against, uh, consensus there says this was a sizable miss.

Yeah, and she's.

She had been sort of had had faith in the stock and had been patient with, uh, CEO Brack and Darryl, who took over in October.

But she said, What do you doing is not really bearing fruit here, She says the company he introduced a transformation plan.

But she said since then in her note, the company's two largest brands, Vans and the North Face have remained under significant pressure, driving the overall top line decline.

She also notes that the company had done a strategic portfolio review.

I mean, they own a lot of different, something like a half dozen different brands.

And she said, they said they finished the review, but they didn't tell.

They didn't reveal what the review found.

So she says that sort of makes things a little murky as well.

I would just, you know, I. I had Sam Poser at Williams Trading like Dana.

Long time, Uh, retail analyst uh, cut this name to sell says his transformation plan has clearly got a long way to go before it gets the core brands working again.

And optimism appears unfounded.

Yeah, I like that.

He says.

Even if some brands are sold, the remaining brands will not magically improve.