VF Corp (NYSE: VFC), the parent company of major apparel brands like The North Face, Vans, and Timberland, saw its shares surge 5.01% on Thursday after reporting better-than-expected third-quarter fiscal 2025 earnings results.
The company posted Q3 sales of $2.83 billion, beating analyst estimates of $2.75 billion. Notable growth drivers included The North Face brand rising 5% year-over-year to $1.25 billion, Timberland jumping 11% to $527 million, offset by declines in Vans and Dickies. Adjusted earnings per share of 62 cents also exceeded the consensus forecast of 34 cents.
While VF Corp guided for Q4 revenue to decline 4-6% due to wholesale timing effects and forex headwinds, it raised its fiscal 2025 free cash flow outlook to $440 million from the prior $425 million view. The company also highlighted progress with its "Reinvent" strategy aimed at improving profitability and strengthening its balance sheet.
Analysts lauded VF Corp's Q3 performance and transformation efforts, with Telsey Advisory Group and Barclays raising their price targets on the stock. Brooke Roach from Goldman Sachs noted the company's solid margin expansion, SG&A cost savings, and debt reduction, remaining optimistic about its margin trajectory despite a Neutral rating.
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