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yesterday

VF Corp Beats Q1 Loss Guidance as Shares Rally

Strategic cost cuts through channel rationalization have driven margins higher to fuel investor confidence

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Shoes are seen for sale at a Vans store, a brand owned by VF Corporation, in Manhattan, New York City, U.S., May 20, 2022. REUTERS/Andrew Kelly/File photo
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Overview

  • VF reported an adjusted operating loss of $56 million in Q1, far below its forecast range of $110 million to $125 million.
  • The company delivered adjusted losses per share of $0.24, beating analysts’ forecast of a $0.34 loss.
  • The North Face and Timberland brands grew 6% and 11% respectively, while Vans sales fell 14% due to deliberate channel rationalization.
  • VF widened its adjusted gross margin by 290 basis points to 54.1% and ended the quarter with $642 million in cash.
  • Following the results, shares jumped 16.7% in premarket trading as investors embraced progress under CEO Bracken Darrell’s Reinvent plan.