Is VFC's EPS growth sustainable beyond 2025?

**V.F. Corporation's (VFC) EPS growth appears to be largely driven by non-recurring factors and may not be sustainable beyond 2025**. Here's why:

1. **Exceptional YoY Growth in 2025 Q3**: VFC's EPS grew by 490.91% in Q3 2025, which is an extraordinary figure that suggests a one-time event rather than a sustainable trend.

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|VFC|VFC.N|V.F.|2025 Q1|-346.6666666666667|-0.67|169|
|VFC|VFC.N|V.F.|2025 Q2|111.20689655172416|0.13|169|
|VFC|VFC.N|V.F.|2025 Q3|490.90909090909093|0.43|169|

2. **Challenging External Environment**: The company has indicated a challenging U.S. Wholesale environment, which reflects broader economic pressures. Such challenges are unlikely to disappear quickly, suggesting that the high EPS growth may not continue.
3. **Limited Industry Growth Prospects**: The Textiles, Apparel & Luxury Goods industry is facing a downturn, with no visible catalysts for a revival in the near term. This limited growth prospect could cap the EPS growth potential of VFC.
4. **Economic Indicators**: The U.S. GDP growth rate has been volatile, with a recent decline to 2.6% by the end of 2024. Slowing GDP growth can negatively impact consumer spending and, consequently, apparel sales. The employment rate has also been stable but shows a slight dip to 59.9% by the end of 2024. A stable but not improving employment rate may limit the growth in consumer purchasing power.
US GDP growth rate
|code|United States: GDP|Date|market_code|
|---|---|---|---|
||1.8295019E13|20151231||
||1.8804913E13|20161231||
||1.9612102E13|20171231||
||2.0656516E13|20181231||
||2.1539982E13|20191231||
||2.1354105E13|20201231||
||2.3681171E13|20211231||
||2.6006893E13|20221231||
||2.7720709E13|20231231||
||2.918489E13|20241231||

US Employment Rate
|code|U.S.: Employment Rate: 16 Years and Over: Seasonal Adjustment: Current Month Value|Date|market_code|
|---|---|---|---|
||59.9|20220430||
||60|20220531||
||59.9|20220630||
||60|20220731||
||60.1|20220831||
||60.1|20220930||
||60|20221031||
||59.9|20221130||
||60.1|20221231||
||60.2|20230131||

5. **Future Outlook**: VFC's future outlook does not project continued EPS growth. The company expects total revenue to remain flat or increase slightly, which does not imply a continuation of the current EPS growth rate.

In conclusion, while VFC has experienced an exceptional EPS growth in Q3 2025, the sustainability of this growth beyond 2025 is uncertain. The high growth is likely a result of one-time factors, and the industry's challenges, combined with macroeconomic indicators, suggest that a return to such high growth rates is unlikely in the near future.