) remains on our Neutral list with a target price of $195.00.
Moreover, the company carries a Zacks Rank #3 (Hold).
We are impressed with the company's consistent positive
earnings surprise trend, strong organic revenue growth and
impressive management guidance. Nevertheless, there is anxiety
due to sluggish economic recovery, slowdown in China as well as
high household debt and unemployment level, which can constrain
The first-quarter 2013 earnings of $2.43 per share at V.F.
Corporation marked a rise of over 25% from the comparable
year-ago quarter and beat the Zacks Consensus Estimate of $2.17.
The year-over-year increase was primarily driven by strong
top-line growth along with improved margins.
From its earnings surprise history, we see that the company
has beaten the Zacks Consensus Estimate in the past 14 quarters,
with an average positive surprise of 10.4%.
Given the solid first-quarter results, the company raised its
fiscal 2013 earnings projection to $10.75 per share from $10.70
forecasted earlier. Net sales for the fiscal will likely increase
6% to $11.5 billion. Gross and operating margins are expected to
expand by 100 basis points (bps). Currently, the Zacks Consensus
Estimate is $10.87 per share, which is substantially above the
Apart from strong first-quarter results, V.F. Corp.'s growth
prospects seem promising given the company's sustained focus on
strategic acquisitions along with expanding global
On the flip side, the company operates in a competitive
environment and strives to maintain its market share, actively
contesting with numerous manufacturers and distributors of
apparel and related products. V.F. Corp. primarily competes on
the basis of brand recognition, fashion, price, service, store
location, and quality. Failure to offer high-quality
differentiated products at a competitive price may hamper the
company's market share, consequently hurting its top and
Other Stocks Worth Considering
Better performing stocks in the apparel retail industry
Michael Kors Holdings Limited
Joe's Jeans Inc
). Hanesbrands and Michael Kors carry a Zacks Rank #1 (Strong
Buy), while Joe's Jeans has a Rank #2 (Buy).
HANESBRANDS INC (HBI): Free Stock Analysis
JOES JEANS INC (JOEZ): Free Stock Analysis
MICHAEL KORS (KORS): Free Stock Analysis
V F CORP (VFC): Free Stock Analysis Report
To read this article on Zacks.com click here.