Original source text
Key Takeaways V.F. Corp. is expected to post a 4.9% revenue decline and a narrower fiscal Q1 loss.The North Face, Timberland and Altra growth may partly offset continued weakness at Vans.Gross margin gains may be outweighed by higher SG&A, with an operating loss near $100 million. V.F. Corporation (VFC - Free Report) is scheduled to report first-quarter fiscal 2027 results on July 29, before the opening bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.68 billion, indicating a 4.9% dip from the prior-year quarter’s figure.The consensus estimate calls for a loss of 22 cents per share, narrowing from a loss of 24 cents in the year-ago quarter. The metric has been stable in the past 30 days.
V.F. Corp. delivered an earnings surprise of 100% in the last reported quarter. In the trailing four quarters, the company’s earnings beat the Zacks Consensus Estimate by 47.5%.
Key Factors to Influence VFC’s Q1 ResultsV.F. Corp.’s first-quarter fiscal 2027 results are likely to reflect continued strength in its growth brands, led by The North Face, Timberland and Altra. Management expects these brands to benefit from sustained investments in product innovation, marketing and direct-to-consumer ("DTC") initiatives. The North Face is expected to maintain healthy momentum across categories, while Timberland should continue benefiting from stronger full-price sales and store expansion. Altra is also likely to remain a key growth driver, supported by product launches and increasing brand awareness. These factors are expected to partially offset continued weakness in Vans and support the company's long-term growth strategy.
The quarter is expected to remain pressured by continued softness at Vans. Management projects first-quarter revenues to decline low-single digits, primarily due to wholesale timing shifts that pulled certain orders into the fourth quarter of fiscal 2026. In addition, the company expects the first half of fiscal 2027 to remain weaker than the second half, with wholesale demand still recovering. While Vans' Americas DTC business continues to improve, management believes wholesale recovery will take longer as new product momentum gradually translates into higher sell-in across retail partners.
Investors will also closely watch VFC's profitability trends. The company expects gross margin expansion in the first quarter, supported by pricing actions, improved inventory management, better product mix and operational efficiencies. However, these gains are expected to be more than offset by higher SG&A expenses as VFC continues investing aggressively in marketing, DTC capabilities and Altra to support long-term growth. Consequently, management expects an operating loss of roughly $100 million for the quarter, which is incorporated into its full-year guidance.
Macroeconomic challenges are also expected to remain a headwind during the quarter. Management cited ongoing geopolitical disruptions in the Middle East, softer demand in Europe and uncertainty surrounding tariffs as factors likely to pressure first-half revenue trends. Although VFC has implemented sourcing diversification, pricing actions and supply-chain mitigation initiatives to lessen the tariff impact, these external factors are expected to weigh on near-term performance. Nevertheless, management reiterated confidence in achieving full-year revenue growth, expanding operating margins and progressing toward its medium-term financial targets.
What the Zacks Model Unveils for VFCOur proven model doesn’t conclusively predict an earnings beat for V.F. Corp. this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
V.F. Corp. currently has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell). You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Valuation Picture of VFC StockGoing by the price/earnings ratio, VFC stock is currently trading at 14.48 on a forward 12-month basis, lower than the Textile - Apparel industry’s 15.67. It is also trading lower than its high of 21.42.
Image Source: Zacks Investment Research
The recent market movements show that VFC’s shares have lost 14.2% in the past six months compared with the industry's 1.5% drop.
Image Source: Zacks Investment Research
Stocks Poised to Beat Earnings EstimatesHere are some companies that, according to our model, have the right combination of elements to post an earnings beat:
SharkNinja, Inc. (SN - Free Report) currently has an Earnings ESP of +1.29% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
SN is likely to register growth in its bottom and top lines when it reports second-quarter 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.6 billion, indicating a 13.5% increase from the figure reported in the year-ago quarter.
The consensus estimate for SN’s second-quarter earnings is pegged at $1.09 per share, implying 12.4% growth from the year-ago quarter’s actual. The consensus mark has dipped a penny in the past 30 days.
MGM Resorts International (MGM - Free Report) currently has an Earnings ESP of +3.32% and a Zacks Rank of 3. MGM is likely to register a top-line increase when it reports second-quarter 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.5 billion, indicating a 1.4% rise from the figure reported in the year-ago quarter.
The consensus estimate for MGM Resorts’ second-quarter earnings is pegged at 62 cents a share, implying a 21.5% decrease from the year-earlier quarter. The consensus mark has increased by 2 cents in the past seven days.
Hilton Worldwide, Inc. (HLT - Free Report) currently has an Earnings ESP of +1.54% and a Zacks Rank of 3.
For the to-be-reported quarter, Hilton Worldwide’s earnings are expected to increase 3.6%. Hilton Worldwide reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 4.6%.