The 10-second takeaway
For the quarter ended March 30 (Q1), VF met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share expanded significantly.
Margins expanded across the board.
VF chalked up revenue of $2.61 billion. The 18 analysts polled by S&P Capital IQ predicted a top line of $2.64 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $2.43. The 21 earnings estimates compiled by S&P Capital IQ predicted $2.19 per share. Non-GAAP EPS of $2.43 for Q1 were 25% higher than the prior-year quarter's $1.94 per share. GAAP EPS of $2.41 for Q1 were 26% higher than the prior-year quarter's $1.91 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 48.1%, 240 basis points better than the prior-year quarter. Operating margin was 13.7%, 140 basis points better than the prior-year quarter. Net margin was 10.4%, 200 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.26 billion. On the bottom line, the average EPS estimate is $1.19.
Next year's average estimate for revenue is $11.57 billion. The average EPS estimate is $10.79.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 485 members out of 508 rating the stock outperform, and 23 members rating it underperform. Among 174 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 173 give VF a green thumbs-up, and one 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 $177.94.
Selling to fickle consumers is a tough business for VF or anyone else in the space. But some companies are better equipped to face the future than others. In a new report, we'll give you the rundown on three companies that are setting themselves up to dominate retail. Click here for instant access to this free report.
- Add VF to My Watchlist.