VF Corp: Q4 Earnings Beat Estimates, Is It a Buy?

Key Highlights:

* Q4 CY2024 revenue of $2.83 billion, exceeding analyst estimates (1.9% YoY growth)
* Non-GAAP EPS of $0.62, surpassing consensus by 83.1%
* Adjusted EBITDA of $285.8 million, beating estimates by 1.8%
* Constant currency revenue up 2% YoY
* Market capitalization: $10.35 billion

Company Overview:

VF Corp (NYSE: VFC) is a lifestyle apparel and accessories giant, owning brands like The North Face, Vans, and Supreme.

Sales Growth:

VF Corp's sales growth has been challenged in recent years:

* 5-year sales growth rate: -2.2%
* 2-year sales growth rate: -9.4%

Cash Flow:

VF Corp has faced cash profitability issues:

* Free cash flow margin averaged 7.8% over the last two years
* Q4 free cash flow margin: 30.7% (below the previous year)

Analyst Outlook:

* Revenue growth estimate: 1.7% over the next 12 months
* Free cash flow margin forecast: 8.6% for the next 12 months

Key Takeaways:

VF Corp exceeded revenue and EPS expectations in Q4 CY2024. However, long-term sales growth and cash profitability remain concerns.

Investment Takeaway:

While Q4 results were positive, investors should carefully consider the stock's valuation and long-term prospects before making a buy decision. Read our full research report here for a comprehensive analysis of VF Corp's business quality and investment potential.