V.F. Corp. (NYSE:VFC) shares plunged by nearly 16% in the premarket session today after the apparel and footwear retailer announced dismal fourth-quarter results. VFC’s portfolio includes some of the most well-recognized brands, such as The North Face, Timberland, Dickies, Vans, and Supreme.
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Not a ‘Supreme’ Performance
During the quarter, VFC’s revenue declined by 12.4% year-over-year to $2.4 billion. The figure lagged expectations by $20 million. Moreover, the company’s net loss per share of $0.32 surprised the Street, which had anticipated an EPS of $0.02.
This revenue decline was primarily driven by a 5% drop in VFC’s The North Face business and a 26% decrease in its Vans business. The retailer also experienced lower sales in its other brands, such as Timberland and Dickies. Concurrently, the company’s operating margin contracted by 910 basis points.
This dismal performance points to continued sales challenges for VFC’s brands. In recent times, the company has undertaken inventory reductions to improve its cash flow generation. It aims to lower costs, pare down debt, and improve the sagging fortunes of its brands in Fiscal year 2025.
What to Expect Next…
Importantly, VFC has completed a strategic review of its brands, and further details are awaited from the company. Reportedly, VFC may be looking to sell its popular skater brand, Supreme.
What Is the VFC Stock Price Target?
Today’s price decline further adds to the nearly 32% drop in VFC stock over the past year. Overall, the Street has a Hold consensus rating on the stock, alongside an average VFC price target of $14.95. However, analysts’ views on the stock could see a revision following today’s earnings report.
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