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V.F. Corp (VFC) to Report Q1 Earnings: What's in the Offing?

V.F. Corporation VFC is slated to report first-quarter fiscal 2021 results on Jul 31, before the opening bell. This lifestyle apparel designer player delivered an earnings surprise of 433.3% in the last reported quarter. Moreover, the company’s earnings outpaced the Zacks Consensus Estimate by 109.8%, on average, in the trailing four quarters.

The Zacks Consensus Estimate for fiscal first-quarter bottom line of a loss of 64 cents per share suggests a significant decline of 313.3% from the year-ago period’s reported figure. Moreover, it has been unchanged over the past 30 days. The consensus mark for revenues is pegged at $963.2 million, indicating a decrease of 57.6% from the figure reported in the year-ago quarter.

Key Factors to Note

V.F. Corp is on track to reopen stores in a phased manner after the temporary store closures due to the COVID-19 outbreak. All its retail stores in the Asia-Pacific region that were reopened by the end of fourth-quarter fiscal 2020 are witnessing improved store traffic. Also, the company is on track with reopening stores in the EMEA region. This is likely to have provided some cushion to the company’s top line in the fiscal first quarter.

Further, its solid digital performance made up for the loss of sales due to store closures stemming from the COVID-19 situation. This can be attributable to robust growth in Vans, The North Face, Dickies and other emerging brands. Encouragingly, the company has allotted 80% of its total investments in fiscal 2021 for enhancing digital capabilities.

However, lower demand and temporary store closures in some parts will continue to mar the company’s top line. Due to the continued impacts of COVID-19, management in its last earnings call expected revenues to decline slightly more than 50% in first-quarter fiscal 2021.

V.F. Corporation Price and EPS Surprise

V.F. Corporation Price and EPS Surprise

V.F. Corporation price-eps-surprise | V.F. Corporation Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for V.F. Corp this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

V.F. Corp carries a Zacks Rank #3 but an Earnings ESP of 0.00%, which makes surprise prediction difficult.

Stocks With Favorable Combinations

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.

Hanesbrands HBI currently has an Earnings ESP of +120.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Rent-A-Center RCII currently has an Earnings ESP of +3.39% and a Zacks Rank #3.

Spectrum Brands SPB currently has an Earnings ESP of +4.85% and a Zacks Rank #3.

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RentACenter, Inc. (RCII): Free Stock Analysis Report

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Spectrum Brands Holdings Inc. (SPB): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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