Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



VF Corp. Earnings: Are Ambitious Growth Targets Within Reach?

VF (NYSE: VFC  ) will release its quarterly report on Friday, and investors have generally been pleased with the apparel maker's efforts to grow its business. Even as it seeks to capitalize on the same general trends that Nike (NYSE: NKE  ) identified in the broader athletic realm, VF's focus on high-end outdoor footwear and clothing isn't the only source of potential growth for the company. Given VF's ambitious target for revenue gains in future years, it will need every opportunity it can get.

VF has numerous brands under its belt, with its best-known North Face and Timberland products going up against Columbia Sportswear (NASDAQ: COLM  ) and other specialty manufacturers. Yet VF also has Vans footwear, Lee and Wrangler jeans, and even premium clothing and accessories under labels like Ella Moss. The question VF faces is whether this powerful combination of brands can generate the growth it wants in order to keep dominating its industry. Let's take an early look at what's been happening with VF over the past quarter and what we're likely to see in its report.

Source: The North Face.

Stats on VF

Analyst EPS Estimate


Change From Year-Ago EPS


Revenue Estimate

$2.75 billion

Change From Year-Ago Revenue


Earnings Beats in Past 4 Quarters


Source: Yahoo! Finance.

Can VF earnings grow faster?
In recent months, analysts have cut back their views on VF earnings slightly, reducing first-quarter estimates by $0.04 per share and full-year 2014 projections by about 1%. The stock has picked up a modest amount of ground, rising 3% since mid-January.

VF disappointed investors early in the quarter, as fourth-quarter results were weaker than shareholders had expected. Revenue rose 8%, but adjusted earnings growth of 6% was below projections. The trouble came from denim sales, which has been a problematic area for more jeans-focused retailers and producers as well. By contrast, sales of its North Face-branded outdoor gear were strong, with a 30% jump in direct sales to customers. Vans also continues to play a vital role for the company, giving VF some valuable diversification in its target-customer demographic.

VF has worked hard to give customers innovative products. With moves like including its Thermoball insulative technology in products at its brand shops, which are located at hundreds of sporting-goods stores, VF highlights its core products while turning its research and development spending into good marketing. Increased interest in nontraditional sports such as skateboarding could also drive VF to further innovation in those areas.

One interesting question is whether VF could acquire Columbia Sportswear to become an outdoors colossus. That would help give VF enough heft to challenge Nike or other major athletic-wear companies if they made a big push into outdoor apparel, and Columbia's relatively small size makes an acquisition realistic. Given VF's ambitious plans to raise its annual revenue to $17 billion by fiscal 2017 -- more than half again its current run rate based on first-quarter projections -- such an acquisition might be instrumental in bolstering sales growth.

In the VF earnings report, watch to see what approach company management takes with respect to its revenue-growth goals. With so much interest in the outdoors, VF has an opportunity to take its North Face and Timberland brands to the next level and make shareholders happier in the process.

6 stock picks poised for incredible growth
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Click here to add VF to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2928737, ~/Articles/ArticleHandler.aspx, 9/1/2015 8:24:16 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Dan Caplinger

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated 11 hours ago Sponsored by:
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASD 4,776.51 -51.82 -1.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/31/2015 4:01 PM
VFC $72.43 Down -0.65 -0.89%
VF Corp CAPS Rating: *****
COLM $61.37 Up +0.73 +1.20%
Columbia Sportswea… CAPS Rating: *****
NKE $111.75 Down -0.75 -0.67%
Nike CAPS Rating: *****