Stifel Lifts VF Corp Price Target on Expected Q3 Upside

• V.F. Corporation (NYSE:VFC) reported an EPS of -$0.13, beating estimates but with a revenue miss.
• The company saw a 9.7% decline in revenue year-over-year, indicating challenges in consumer demand.
• Despite revenue shortfall, VFC's improved EPS suggests better cost control amidst a tough macroeconomic environment.

V.F. Corporation (NYSE:VFC), a renowned apparel and footwear company known for brands like The North Face, Vans, and Timberland, reported its Q4 2025 earnings on May 21, 2025. The company announced an earnings per share (EPS) of -$0.13, surpassing the estimated EPS of -$0.15. However, it generated a revenue of $2.14 billion, slightly below the expected $2.17 billion.

During the Q4 2025 earnings call, key figures from VFC, including Allegra Perry, Bracken Darrell, and Paul Vogel, discussed the company's performance. Analysts from major financial institutions attended, highlighting the importance of VFC's financial results. The reported revenue marked a 9.7% decline from the previous year, falling short of the Zacks Consensus Estimate of $2.18 billion, resulting in a negative surprise of 1.62%.

Despite the revenue shortfall, VFC's EPS showed improvement from the previous year's -$0.32, with a positive surprise of 13.33% against the consensus estimate. This indicates that while revenue was below expectations, the company managed to control costs better than anticipated. However, the challenging macroeconomic environment and uncertainty surrounding tariffs have negatively impacted consumer demand, contributing to the company's financial struggles.

VFC's financial metrics reveal a negative price-to-earnings (P/E) ratio of -10.73, indicating ongoing losses. The price-to-sales ratio is 0.50, meaning investors pay 50 cents for every dollar of sales. The enterprise value to sales ratio is 0.94, while the enterprise value to operating cash flow ratio is 17.05, reflecting the company's valuation relative to its cash flow. The negative earnings yield of -9.32% further highlights VFC's current unprofitability.

The company's debt-to-equity ratio stands at 3.42, indicating a higher level of debt compared to equity. However, with a current ratio of 1.56, VFC maintains a reasonable level of liquidity to cover its short-term liabilities. Despite the financial challenges, these metrics provide investors with a comprehensive view of VFC's financial health and potential future performance.

V.F. Corporation (NYSE:VFC) is a prominent player in the lifestyle apparel and footwear industry, with a rich history dating back to 1899. Headquartered in Denver, Colorado, the company operates through three main segments: Outdoor, Active, and Work. Its portfolio boasts renowned brands like The North Face, Timberland, Vans, and Supreme. V.F. Corporation distributes its products through various channels, including specialty stores, department stores, national chains, and direct-to-consumer platforms such as retail stores and e-commerce.

The consensus price target for V.F. Corporation's stock has experienced some fluctuations over the past year. Last month, the average price target was $17.00, a slight decrease from the last quarter's $17.67. This indicates a modest decline in analyst expectations over the past quarter. Despite this, Barclays analyst Adrienne Yih has set a significantly higher price target of $46, suggesting a more optimistic outlook for the company's future performance.

Comparing the last quarter's average price target of $17.67 to the last year's average of $17.52, there was a minor increase, reflecting a slightly more positive sentiment earlier in the year. However, the overall yearly change shows a decrease from $17.52 to $17.00, indicating a modest decline in analyst sentiment over the year. This decline may be attributed to macroeconomic uncertainties and challenges in wholesale order timing, as highlighted by Business Wire.

Despite these challenges, V.F. Corporation is working on narrowing its losses and implementing transformation efforts, which are anticipated to provide some relief. Cost savings are expected to support the company's margin resilience and potentially lead to year-on-year earnings growth. However, the overall outlook remains uncertain due to weakened consumer spending and disruptions in sourcing strategies caused by tariffs. Investors should keep an eye on V.F. Corporation's upcoming earnings reports and strategic announcements that could impact its stock performance and analyst price targets.

Stifel analysts lifted their price target for VF Corp. (NYSE:VFC) to $25 from $21, maintaining a Buy rating on the stock. The analysts see a promising opportunity for VFC shares to surprise on the upside and experience a rerating in the coming quarters.

Starting in Q3, the analysts anticipate positive shifts, noting that the October report for Q2 is expected to reveal mixed results but with constructive developments. Positive indicators include an expected turnaround in Vans, an improvement in gross margins after a long period of year-over-year declines, further cost-saving initiatives, and potentially expanded guidance.

While The North Face brand might experience a slight slowdown in Q2, the analysts project a substantial recovery in Q3. Overall, the second quarter will likely showcase signs of stabilization, with significant margin expansion potential in H2 and fiscal 2026. Stifel’s projections for H2 and 2026 remain well above consensus, driven by the company’s improving fundamentals, clearer outlook, progress in de-risking the balance sheet, and potential for positive estimate revisions. They expect these factors to support a higher valuation for VFC shares heading into 2025.

V.F. Corp. (NYSE:VFC) shares plummeted over 12% intra-day due to its Q2 EPS falling short, withdrawn guidance, and a reduced dividend. The reported Q2 EPS was $0.63, slightly below the expected $0.65. Revenue decreased by 2% to $3 billion, marginally surpassing the projected $2.99 billion.

V.F. Corp. introduced the Reinvent program, targeting enhanced brand development and better operational efficiency. The initial phase focuses on four key goals: bolstering North American outcomes, initiating the Vans brand revival, cost-cutting, and fortifying the financial foundation.

The company cut its fiscal 2024 revenue and earnings forecast, revising its 2024 free cash flow projection to around $600 million from the initial $900 million. The Board also announced a dividend of $0.09 per share for the quarter, marking a 70% reduction from the prior dividend.

V.F. Corp. (NYSE:VFC) shares plummeted over 12% intra-day due to its Q2 EPS falling short, withdrawn guidance, and a reduced dividend. The reported Q2 EPS was $0.63, slightly below the expected $0.65. Revenue decreased by 2% to $3 billion, marginally surpassing the projected $2.99 billion.

V.F. Corp. introduced the Reinvent program, targeting enhanced brand development and better operational efficiency. The initial phase focuses on four key goals: bolstering North American outcomes, initiating the Vans brand revival, cost-cutting, and fortifying the financial foundation.

The company cut its fiscal 2024 revenue and earnings forecast, revising its 2024 free cash flow projection to around $600 million from the initial $900 million. The Board also announced a dividend of $0.09 per share for the quarter, marking a 70% reduction from the prior dividend.

Goldman Sachs upgraded V.F. Corp. (NYSE:VFC) to Buy from Sell, with an increased price target of $27, citing the stock's nearing inflection point with the balance of catalysts for the stock now weighted to the upside.

The analysts noted that the company's extreme underperformance over the past two years coupled with the company's turnaround initiatives will drive relative outperformance in the stock.

Goldman listed several key bullish developments for the company, including a stronger product innovation pipeline at Vans, better retail merchandising, and wholesale distribution optimization, which should help stem declines in North America revenues. Additionally, enhanced operational focus with better inventory management and cost control is expected to deliver stronger free cash flow in 2024.

The company's strategic optionality from new management is also a positive, as it is in talks to find a new permanent CEO and has recently appointed new heads at Vans, Dickies, and emerging brands.