VFC Struggles After Earnings Miss, Halved Q2 Forecast

The Vans parent predicted an over 50% drop in its current-quarter revenue

Deputy Editor
May 15, 2020 at 9:39 AM
facebook twitter linkedin

Apparel name VF Corp (NYSE:VFC) just announced its fiscal fourth-quarter results, with earnings and revenue coming in below analysts forecasts. The North Face parent also forecast a more than 50% drop in revenue for its current quarter, with pandemic-related store closures digging into sales, and did not provide a fiscal 2021 outlook. At last check, the shares of VFC are down 5.6% to trade at $52.32. 

This puts the retail name even closer to its all-time lows near the $45 region. Though its $50 level is still providing some support on the charts, VFC is running up against pressure at its 50-day moving average. For the year, VF stock is off around 45%.

Analysts are still somewhat optimistic on VFC. Ten of the 19 in coverage consider it a "buy" or better, while the remaining nine say "hold." Its 12-month consensus price target of $62.81, meanwhile, is a 13.3% premium to last night's close. 

Options players, on the other hand, are already on the bearish bandwagon. VFC sports a 10-day put/call volume of 1.67 at the International Securities Exchange (ISE), Cboe Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 79% of readings from the past year. This suggests this appetite for bearish bets is unusual. 



Special Offers from Schaeffer's Trading Partners