VF Corp raises FY27 revenue outlook to +2% or better vs. last year.
Company expects FY27 adjusted operating margin of approximately 8%.
VF Corp sees FY27 free cash flow flat to up vs. last year of $405 million.
Result drivers
Brand performance - The North Face, Timberland and Altra delivered growth, with The North Face up 6% and Timberland up 4% year over year, led by the Americas and DTC channels.
Vans weakness - Vans revenue fell 8% year over year, with growth in Americas DTC more than offset by declines in global wholesale.
Americas strength - Americas region revenue excluding Dickies grew 4% in constant currency, with growth across both channels.
Quarterly results
U.S. apparel group reported fiscal Q1 revenue down 5% year over year, beating analyst expectations.
Adjusted loss per share for fiscal Q1 missed analyst expectations.
Company raised full-year revenue outlook to at least 2% growth.
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 12 "hold" and 3 "sell" or "strong sell". The average consensus recommendation for the apparel & accessories peer group is "buy." Wall Street's median 12-month price target for VF Corp is $18.00, about 1.4% above its July 28 closing price of $18.25. The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago.
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