V.F. 2025 Q4 Earnings Net Loss Improves by 64%
Daily EarningsWednesday, May 21, 2025 9:03 am ET
36min readV.F.(VFC) reported its fiscal 2025 Q4 earnings on May 20th, 2025. Despite a decline in revenue, V.F. exceeded expectations by significantly narrowing losses, with net income showing a remarkable 64% improvement. The company’s guidance remains cautiously optimistic, projecting a gradual recovery in fiscal 2026 with anticipated revenue growth. This outlook reflects alignment with strategic initiatives aimed at enhancing brand performance and operational efficiencies.
Revenue
V.F. Corporation's revenue for the fourth quarter of fiscal 2025 saw a decline of 4.6%, totaling $2.14 billion, compared to the $2.25 billion achieved in the same quarter of the previous year. The Outdoor segment led with $1.28 billion, followed by the Active segment contributing $645.32 million, and the Work segment adding $222.17 million, culminating in a collective revenue of $2.14 billion across all segments.
Earnings/Net Income
V.F. significantly improved its earnings per share, narrowing losses to $0.39 per share in 2025 Q4 from a loss of $1.08 per share in 2024 Q4, reflecting positive progress in its financial recovery.
Price Action
The stock price of V.F. has edged up 0.07% during the latest trading day, has dropped 3.48% during the most recent full trading week, and has surged 38.09% month-to-date.
Post Earnings Price Action Review
The strategy of purchasing V.F. shares following the earnings report, which initially showed revenue increases, proved to be detrimental over a 30-day holding period, resulting in a substantial loss of 70.88%. This performance was starkly contrasted against a benchmark return of 44.88%, leading to an excess return of -115.75%. The strategy suffered from a high maximum drawdown of -81.08% and a negative Sharpe ratio of -0.60, indicating poor risk-adjusted results. Additionally, with volatility measured at a significant 56.27%, the strategy was subject to heightened risk levels, further underscoring its ineffectiveness during this period.
CEO Commentary
Steve Rendle, CEO of V.F. Corporation, remarked on the company's business performance, highlighting the resilience shown amidst challenges in the retail environment. He emphasized growth drivers, particularly the strength in the Vans and The North Face brands, while acknowledging headwinds related to inventory management and market volatility. Strategic priorities include continued investment in brand innovation and sustainability initiatives to enhance market positioning. Rendle expressed a cautious optimism about the future, noting the importance of executing the transformation strategy to navigate ongoing challenges effectively.
Guidance
V.F. Corporation anticipates a gradual recovery in fiscal 2026, projecting revenue growth driven by strong brand performance and improved operational efficiencies. The company expects adjusted earnings per share to be in the range of $0.30 to $0.40, reflecting a cautious outlook while maintaining focus on strategic initiatives. Management highlighted that they foresee ongoing challenges in the external environment but are confident in their ability to adapt and capitalize on market opportunities.
Additional News
Within the past three weeks, V.F. Corporation has announced several notable developments. On April 30, 2025, Wells Fargo upgraded its outlook for V.F. (NYSE: VFC) from Underweight to Equal-Weight, suggesting a potential 74.52% upside in the stock price based on analyst forecasts. Additionally, V.F.’s Board of Directors declared a quarterly dividend of $0.09 per share, payable on June 18, 2025, indicating a commitment to returning value to shareholders. Furthermore, the company hosted an investor day on March 6, 2025, where President and CEO Bracken Darrell outlined the progress made under the Reinvent transformation plan, including reduced costs and improved performance in the Americas business.
Revenue
V.F. Corporation's revenue for the fourth quarter of fiscal 2025 saw a decline of 4.6%, totaling $2.14 billion, compared to the $2.25 billion achieved in the same quarter of the previous year. The Outdoor segment led with $1.28 billion, followed by the Active segment contributing $645.32 million, and the Work segment adding $222.17 million, culminating in a collective revenue of $2.14 billion across all segments.
Earnings/Net Income
V.F. significantly improved its earnings per share, narrowing losses to $0.39 per share in 2025 Q4 from a loss of $1.08 per share in 2024 Q4, reflecting positive progress in its financial recovery.
Price Action
The stock price of V.F. has edged up 0.07% during the latest trading day, has dropped 3.48% during the most recent full trading week, and has surged 38.09% month-to-date.
Post Earnings Price Action Review
The strategy of purchasing V.F. shares following the earnings report, which initially showed revenue increases, proved to be detrimental over a 30-day holding period, resulting in a substantial loss of 70.88%. This performance was starkly contrasted against a benchmark return of 44.88%, leading to an excess return of -115.75%. The strategy suffered from a high maximum drawdown of -81.08% and a negative Sharpe ratio of -0.60, indicating poor risk-adjusted results. Additionally, with volatility measured at a significant 56.27%, the strategy was subject to heightened risk levels, further underscoring its ineffectiveness during this period.
CEO Commentary
Steve Rendle, CEO of V.F. Corporation, remarked on the company's business performance, highlighting the resilience shown amidst challenges in the retail environment. He emphasized growth drivers, particularly the strength in the Vans and The North Face brands, while acknowledging headwinds related to inventory management and market volatility. Strategic priorities include continued investment in brand innovation and sustainability initiatives to enhance market positioning. Rendle expressed a cautious optimism about the future, noting the importance of executing the transformation strategy to navigate ongoing challenges effectively.
Guidance
V.F. Corporation anticipates a gradual recovery in fiscal 2026, projecting revenue growth driven by strong brand performance and improved operational efficiencies. The company expects adjusted earnings per share to be in the range of $0.30 to $0.40, reflecting a cautious outlook while maintaining focus on strategic initiatives. Management highlighted that they foresee ongoing challenges in the external environment but are confident in their ability to adapt and capitalize on market opportunities.
Additional News
Within the past three weeks, V.F. Corporation has announced several notable developments. On April 30, 2025, Wells Fargo upgraded its outlook for V.F. (NYSE: VFC) from Underweight to Equal-Weight, suggesting a potential 74.52% upside in the stock price based on analyst forecasts. Additionally, V.F.’s Board of Directors declared a quarterly dividend of $0.09 per share, payable on June 18, 2025, indicating a commitment to returning value to shareholders. Furthermore, the company hosted an investor day on March 6, 2025, where President and CEO Bracken Darrell outlined the progress made under the Reinvent transformation plan, including reduced costs and improved performance in the Americas business.
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.
Comments
No comments yet