VF Corp. (VFC) Stock Down on Mixed Q2 Results
NEW YORK (TheStreet) -- Shares of VF Corp. (VFC) - Get Report are falling by 1.22% to $62.40 in early morning trading Friday, after the Greensboro, NC-based apparel and footwear company reported mixed results for the second quarter before today's opening bell.
VF Corp. reported earnings of 35 cents per share on revenue of $2.4 billion for the most recent quarter.
Analysts surveyed by Thomson Reuters expected the company to post earnings of 34 cents per share on revenue of $2.53 billion.
VF Corp. posted earnings of 40 cents per share on revenue of $2.51 billion for the second quarter of last year.
The company expects to see a 3% to 4% increase in revenue for the rest of 2016.
"We expect to deliver on our current 2016 outlook and as a result of the actions we are taking, be even better positioned to provide the strong long-term returns our shareholders have come to expect," VF Corp. CEO Eric Wiseman said in a statement.
Revenue for the company's outdoor and action sports brands, jeanswear brands and imagewear increased, while revenue for its sportswear brands declined. VF Corp. owns a variety of different brands, such as The North Face, Vans, Wrangler and Kipling, among others.
Additionally, last month VF Corp. sold its contemporary brands businesses, which included 7 For All Mankind, Splendid and Ella Moss to Delta Galil Industries (DELTY) for $120 million. The company expects the deal to close in the 2016 fiscal third quarter.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate VF CORP as a Buy with a ratings score of B. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: VFC
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