The 10-second takeaway
For the quarter ended March 31 (Q1), VF beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased.
Margins contracted across the board.
VF chalked up revenue of $2.56 billion. The 17 analysts polled by S&P Capital IQ anticipated a top line of $2.44 billion on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $1.96 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.94. The 20 earnings estimates compiled by S&P Capital IQ forecast $1.87 per share. GAAP EPS of $1.91 for Q1 were 4.9% higher than the prior-year quarter's $1.82 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 45.7%, 150 basis points worse than the prior-year quarter. Operating margin was 12.3%, 170 basis points worse than the prior-year quarter. Net margin was 8.4%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.19 billion. On the bottom line, the average EPS estimate is $1.09.
Next year's average estimate for revenue is $11.02 billion. The average EPS estimate is $9.40.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 443 members out of 469 rating the stock outperform, and 26 members rating it underperform. Among 167 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 164 give VF a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on VF is outperform, with an average price target of $156.72.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.