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VF Corp maintains Q2 outlook despite Supreme sale

EditorAhmed Abdulazez Abdulkadir
Published 09/04/2024, 09:22 AM
VFC
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VF Corporation (NYSE: NYSE:VFC) released supplemental financial information today following its pending sale of the Supreme® brand. The data, available on the company’s investor relations website, provides adjusted historical quarterly and annual results for fiscal 2024 and the first quarter of fiscal 2025, excluding the Supreme brand.

The supplemental information aligns with U.S. GAAP standards and is intended to clarify VF's business performance without the Supreme brand. For the second quarter of fiscal 2025, VF reiterated its financial expectations, excluding Supreme’s figures from comparisons. The company forecasts a modest revenue decline improvement, a slight increase in gross margin, and a minor rise in SG&A expenses, which could result in a higher deleverage rate compared to the previous quarter.

VF’s statement also highlighted risks and uncertainties related to the Supreme sale, including regulatory approvals, the transaction's timing and financial impact, and potential challenges in realizing expected benefits. Additional risks include consumer demand variability, supply chain disruptions, and cybersecurity threats.

InvestingPro Insights

In light of VF Corporation's recent financial disclosures and the sale of its Supreme brand, investors may find additional context in the real-time data from InvestingPro. With a market capitalization of $7.33 billion and a negative P/E ratio, VF Corporation's financial health has shown signs of strain, as evidenced by a revenue decline of 10.16% over the last twelve months as of Q1 2025. Despite these challenges, the company has managed to maintain a gross profit margin of 51.9%, indicating a strong control over cost of goods sold relative to sales.

InvestingPro Tips highlight the company's high shareholder yield and its impressive track record of maintaining dividend payments for 54 consecutive years. However, analysts have revised their earnings expectations downwards for the upcoming period. On a more positive note, VF Corporation has experienced a strong return over the last three months, with a price total return of 44.48%. Analysts also predict a return to profitability this year, which could signal a turning point for the company.

For investors seeking a deeper analysis, InvestingPro offers additional tips on VF Corporation's financial outlook. These insights can provide valuable guidance on the potential risks and opportunities associated with the company's stock. With 17 analysts revising their earnings downward and the stock's high price/book multiple, it's clear that careful consideration is warranted before making investment decisions.

To explore these insights further, investors can access a comprehensive list of additional InvestingPro Tips on the VF Corporation's profile page.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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