Why VF Corp (VFC) Shares Are Trading Lower Today

Max Juang /
2024/02/07 12:42 pm EST

What Happened:

Shares of lifestyle clothing conglomerate VF Corp (NYSE:VFC) fell 14.3% in the morning session after the company reported third-quarter results with revenue, operating margin, and EPS, missing analysts' expectations. This underperformance was driven by declines at The North Face ($1.2 billion of revenue vs estimates of $1.3 billion) and Vans ($668 million of revenue vs estimates of $720 million). Management attributed the weakness to multiple factors, including warm weather, tough comps compared to the previous year, underperformance in the Americas, adjustments made to clean up Vans channels, and the impact of a cyber incident at the end of the quarter. Overall, this was a weaker quarter for the company.

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What is the market telling us:

VF Corp's shares are somewhat volatile and over the last year have had 27 moves greater than 5%. But moves this big are very rare even for VF Corp and that is indicating to us that this news had a significant impact on the market's perception of the business.

VF Corp is down 21% since the beginning of the year, and at $14.75 per share it is trading 48.3% below its 52-week high of $28.52 from February 2023. Investors who bought $1,000 worth of VF Corp's shares 5 years ago would now be looking at an investment worth $171.30.

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