VF Corp Exceeds Expectations with Strong Q3 Revenue and Earnings
VF Corp, the apparel and footwear giant, reported better-than-expected revenue and profit for the third quarter, driven by successful brand revitalization efforts. Shares surged nearly 6% in premarket trading.
Favorable weather conditions in the US fueled demand for outdoor and active wear, particularly during the holiday season. Additionally, increased full-price sales and cost reductions supported by VF Corp's turnaround plan boosted the adjusted operating margins by 360 basis points to 11.4%.
For the quarter ending December 28, revenue grew 2% year-over-year to $2.83 billion, exceeding analysts' estimates of $2.75 billion. Adjusted earnings per share reached 62 cents, surpassing the projected 34 cents.
VF Corp's turnaround strategy focuses on the Vans brand, cost reductions of $300 million by fiscal 2025, and divesting non-core businesses like Supreme.
CEO Bracken Darrell expressed confidence in VF Corp's transformation into a differentiated, multi-brand operator.
The company anticipates a moderate decline in fourth-quarter revenue of 4% to 6%, largely in line with analyst expectations of a 4.96% drop.