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V.F. Corp (VFC) to Report Q1 Earnings: Is a Beat on the Cards?

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V.F. Corporation (VFC - Free Report) is slated to report first-quarter fiscal 2022 results on Jul 30, before the opening bell. The lifestyle apparel designer is expected to have witnessed earnings and sales growth in the to-be-reported quarter. The Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at 11 cents per share, which suggests substantial growth from a loss of 57 cents reported in the year-ago quarter. Earnings estimates have moved up by a penny in the past seven days.

The consensus mark for revenues is pegged at $2.14 billion, indicating growth of 99.2% from the figure reported in the year-ago quarter.

The company delivered a negative earnings surprise of 10% in the last reported quarter. However, its earnings outpaced the Zacks Consensus Estimate by 9.7%, on average, in the trailing four quarters.

V.F. Corporation Price and EPS Surprise

 

V.F. Corporation Price and EPS Surprise

V.F. Corporation price-eps-surprise | V.F. Corporation Quote

Key Factors to Note

V.F. Corp’s first-quarter fiscal 2022 sales are expected to have benefited from the strong performance of its largest brands, the solid e-commerce business, and robust sales across all regions and channels. The company has been benefiting from strong business performance in the digital channel and across China. Sales in China are expected to have witnessed gains from strong demand across all brands, particularly The North Face and Dickies. This along with the strong demand across other regions is expected to have aided sales in the APAC segment.

On the last reported quarter’s earnings call, management highlighted that it expects momentum in the China business to continue throughout fiscal 2022, aiding the APAC segment’s sales.

The company has been on track with the digital and hyper-digital business model transformation, which has been boosting the top line for the past few quarters. The digital business is expected to have benefited from strong performance across almost every brand in the portfolio, including the pure-play digital wholesale partners. The total digital business represented about one-third of the total revenues in fourth-quarter fiscal 2021.

However, a declining margin trend due to higher promotional activity to clear excess inventory and the timing of foreign-currency transactions are expected to have been concerning.

What the Zacks Model Unveils

Our proven model conclusively predicts 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

V.F. Corp has a Zacks Rank #3 and an Earnings ESP of +19.12%.

Other Stocks With Favorable Combinations

Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season.

Gildan Activewear, Inc. (GIL - Free Report) presently has an Earnings ESP of +1.41% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Wolverine World Wide, Inc. (WWW - Free Report) currently has an Earnings ESP of +3.38% and a Zacks Rank #2.

Under Armour, Inc. (UAA - Free Report) currently has an Earnings ESP of +15.25% and a Zacks Rank #3.