VF stock rises as the Vans maker laces up for a comeback after Q1 beat
The North Face and Vans parent narrowed its losses and showed early signs of a turnaround as its OG brands staged a comeback.
VF Corp. shares climbed 12% Monday after the parent of Vans, Timberland, and The North Face reported a smaller-than-expected Q1 loss and showed early signs of a potential turnaround.
The company posted an adjusted loss of $0.24 per share, beating the $0.34 loss analysts expected. Revenue came in at $1.76 billion, ahead of Wall Street’s forecast but shy of the company’s previous guidance of $1.81 billion to $1.85 billion.
Bright spots included Timberland and The North Face, which saw sales rise 11% and 6%, respectively, thanks to new brand collections and fewer discounts after a rough stretch last year.
Looking ahead to Q2, VF expects revenue to fall 2% to 3%, slightly better than analysts had forecast. The company projects adjusted operating income of up to $290 million, which falls short of the Street’s $319 million estimate. VF also trimmed its expected tariff costs to between $100 million and $120 million, down from a prior $150 million, citing improved overseas manufacturing rates.
Even with today’s bounce, VF shares are still down about 35% this year.
