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V.F. Corp. (VFC) Q2 Earnings Beat, Cuts View on Unit Sale

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V.F. Corporation (VFC - Free Report) posted second-quarter 2016 results, wherein adjusted earnings of 36 cents rose 5.9% from year-ago earnings and beat the Zacks Consensus Estimate by a couple of cents.

Following the second quarter and excluding the results of the recently sold Contemporary Brands businesses, management lowered its 2016 outlook. The company expects reported earnings per share for 2016 to jump 5% year over year to $3.20, compared with an 11% increase anticipated earlier. Revenue is anticipated to increase 3%–4%, compared to the previous guidance of mid single-digit percentage growth.

Earnings Estimate Revision: The Zacks Consensus Estimate going into the second quarter has been largely stable. Further, if we look at V.F. Corp.’s performance in the trailing four quarters (including the quarter under review), the surprise history has been mixed. The company has an average negative surprise for the trailing four quarters of -0.5%.

V F CORP Price and EPS Surprise

V F CORP Price and EPS Surprise | V F CORP Quote

Revenues: V.F. Corp. generated total revenue of $2,445.3 million that rose 1% year over year but fell short of the Zacks Consensus Estimate of $2,532.5 million. Revenue gained from revenue increases across its Outdoor & Action Sports, Jeanswear and Imagewear coalitions, as well as its direct-to-consumer and international businesses.

Key Events: On Jun 30, 2016, V.F. Corp. announced the sale of its Contemporary Brands businesses, which includes the 7 For All Mankind, Splendid and Ella Moss brands, to Delta Galil Industries Ltd. for $120 million. Following the receipt of regulatory approvals and customary conditions, the company expects to close the sale in the third quarter.

Zacks Rank: Currently, V.F. Corp. carries a Zacks Rank #4 (Sell) which is subject to change following the earnings announcement.

Check back later for our full write up on V.F. Corp.’s earnings report!

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