What caused VFC's EPS surprise in Q1 2025?

VFC's EPS surprise in Q1 2025 can be attributed to several key factors:

1. **Refranchising Gain**: Valvoline Inc., a subsidiary of VFC, experienced a significant pre-tax gain of $71 million from refranchising, which substantially contributed to the higher EPS. This strategic move positively impacted the company's financial performance, leading to a reported EPS of $0.73, which exceeded estimates.
2. **Revenue Growth**: VF Corp's revenue for the quarter was $414 million, surpassing the estimated $399.96 million, marking an 11% increase year-over-year. This robust revenue growth, driven by strong sales across key brands like The North Face and Vans, played a crucial role in the EPS surprise. The company's third-quarter sales reached $2.834 billion, beating the analyst consensus estimate of $2.746 billion, indicating a 2% increase year-over-year.

In conclusion, VFC's EPS surprise in Q1 2025 was primarily driven by a refranchising gain from Valvoline Inc. and robust revenue growth across its key brands, reflecting the company's successful strategic initiatives and market performance.