VF Corp. earnings fall short of estimates
VF Corporation (VFC) reported fiscal third quarter results that fell short of Wall Street estimates. Adjusted earnings per share of $0.57 was lower than the expected $0.77. The apparel company's revenue of $2.96 billion was also short of the expected $3.24 billion. In the release, CEO Bracken Darrell said the company's "top-line performance was disappointing," but that they are starting to see the benefits of its turnaround plan.
Yahoo Finance Live's Julie Hyman and Josh Lipton report the breaking details.
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Editor's note: This article was written by Stephanie Mikulich
Video Transcript
JOSH LIPTON: Let's get to our VF Corp as well, their reporting. Let's see what they did. So revenue here, Julie. Q3 revenue, that comes in light, $2.96 billion. The Street was closer to $3.24 billion. Looking through the segments, outdoor segment, it looks like that's a miss relative to expectations, same with active. It looks like it comes in a touch light. And work segment also looks like it's undershooting expectations. Adjusted gross margins 55.3% though. That is a touch better, it looks like, than what analysts had guessed would be turned in.
Some. commentary as well. Here we have already begun to see the impact of our efforts. The company saying to rightsize the company's cost structure, improve its inventory position, resulting in stronger than expected cash flow and expanded gross margin in the quarter. You've got part-- a part of this story. You can see though, at least, initially here the stock is down. It's really a turnaround story here. You've got a CEO with a turnaround plan in place, trying to turnaround Vans North American. But a lot of folks on the Street are still on the sidelines. And at least initially here investors clearly disappointed.
JULIE HYMAN: Yeah. I mean, it's-- it's amidst activist pressure. It's under activist pressure, I should say, from Engaged Capital among others. And if you look at the numbers here, this is the sixth straight revenue decline that VF has had. And that revenue decline of 16%, as we said, is a bigger decline than estimated. Outdoor segment revenue, it owns Timberlands, down 13%. Active down 21%. Work segment down 17%. So there's no sort of signs of strength in any of those at this point. And I believe all three of those individual segments also missed analyst estimates. So--
JOSH LIPTON: It kind of goes. I saw some analyst commentary heading into this print. And I guess it kind of goes to some of that commentary, which was, listen, cost cutting is one thing, but ultimately do have to execute. You've got to innovate.
JULIE HYMAN: Yeah.
JOSH LIPTON: Right?
