This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

North Face, Vans at Record High, But VF Corp Falls on Hype

NEW YORK (TheStreet) -- Though its top brands boasted record revenues, VF Corp (VFC) shares were tumbling on Friday, victim to fourth-quarter results which couldn't live up to the hype.

By midday, shares of VF Corp. were off 5.8% to $56.44.

The owner of apparel brands North Face, Vans, Lee and Wrangler, reported quarterly sales of $3.3 billion, 8% higher than in the fourth quarter of 2012. Increased sales were driven by double-digit growth in its outdoor & action sports, sportswear, international and direct-to-consumer businesses. That didn't stop from sending shares lower, as revenue missed expectations by around $50 million, according to analysts surveyed by Thomson Reuters.

Net income of 82 cents a share was short consensus by 2 cents.

Sales of leaderboard brand The North Face rose 12% over the year ago quarter, driven by 30% growth in direct-to-consumer channels and mid-single-digit gains in wholesale. Over 2013, the brand grew 7% to become VF's first brand to surpass $2 billion in global annual sales.

The company's second-largest brand, Vans, jumped 14% over the three months to December with double-digit growth across all regions. In the full year, sales jumped 17%, marking the first time it has exceeded $1.7 billion in annual global revenue.

"The combined power of our brands and platforms remains our greatest competitive advantage enabling us to push the envelope on product innovation to connect even more intensely with consumers and providing stellar returns to our shareholders," said CEO Eric Wiseman in a statement. Guidance for fiscal 2014 was also softer than anticipated. Management forecasts a revenue increase of 7% to 8%. Full-year revenue analyst estimates of $12.46 billion assumed a 9% jump in sales.

Per-share earnings between $3 and $3.05 were under expectations for $3.09 a share.

Must Watch: Jim Cramer Says VF Corp's Miss is a Little Disturbing

Must Watch: VF Corp Gets Chilly Reception From Investors on Earnings

TheStreet Ratings team rates VF CORP as a Buy with a ratings score of A+. The team has this to say about their recommendation:

"We rate VF CORP (VFC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, reasonable valuation levels and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,131.97 +100.83 0.59%
S&P 500 1,998.98 +14.85 0.75%
NASDAQ 4,552.7590 +33.8570 0.75%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs