What factors could impact VFC's Q4 2025 EPS forecast?

V.F. Corporation's (VFC) Q4 2025 EPS forecast is likely to be influenced by several key factors:

1. **Challenging Operating Environment**: VFC is expected to face a tough operating environment in Q4 2025, which could negatively impact its EPS. The company's results are likely to be affected by inflationary pressures, soft performance in certain regions and channels, and challenges in its wholesale and direct-to-consumer (DTC) businesses.
2. **Wholesale Business Performance**: The company's wholesale business, particularly in the United States, is expected to face challenges due to cautious forward orders from major partners. This could result in a decline in wholesale revenues, which may negatively impact EPS.
3. **DTC Business Performance**: VFC's DTC business has also been performing poorly, with expectations of a 11.5% year-over-year decline in revenues. The softness across its key brands, such as The North Face and Vans, is likely to persist, affecting the company's profitability and EPS.
4. **Cost Inflation and Freight Costs**: The company is facing cost inflation and rising freight costs, which are expected to squeeze margins and impact profitability. These factors could lead to a decrease in EPS due to higher operational expenses.
5. **Consumer Preferences and Market Saturation**: The outdoor apparel market is highly competitive, and The North Face is struggling to maintain its premium positioning while appealing to a broader audience. Vans is grappling with a saturated sneaker market and a decline in appeal among younger customers. These factors could lead to continued weak sales and negatively impact EPS.
6. **Strategic Initiatives and Cost Savings**: On the positive side, VFC has been executing its Reinvent transformation program, which includes cost reduction initiatives and a focus on sustainability. The company has set a target to reach $300 million in savings by the end of FY25, which could positively influence EPS if these initiatives are effectively implemented.

In conclusion, VFC's Q4 2025 EPS forecast is likely to be influenced by a combination of challenging market conditions, business performance, cost factors, and strategic initiatives. While some factors may pose challenges, others present opportunities for improvement.