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VF Corporation (NYSE:VFC), the parent company of The North Face and Vans, saw its stock surge 18% after reporting better-than-expected second-quarter earnings and providing an improved outlook for the third quarter.
The apparel and footwear maker posted adjusted earnings per share of $0.60 for the second quarter, significantly beating the analyst estimate of $0.38. Revenue came in at $2.76 billion, slightly above the consensus estimate of $2.73 billion, though down 6% YoY.
VF Corp's performance showed broad-based sequential improvement compared to the first quarter. The North Face brand saw a 3% decline in sales, while Vans experienced an 11% drop, both marking improvements from the previous quarter's results.
Bracken Darrell, President and CEO, stated, "Our results in the quarter met our expectations and reflect a sequential and broad-based improvement in year-on-year trends. At the same time, we made further progress on our four Reinvent priorities and we are on track to reach our previously announced $300 million savings target by the end of FY25."
The company's gross margin improved by 120 basis points to 52.2% compared to the same period last year. However, the operating margin decreased by 210 basis points to 9.9%.
Looking ahead, VF Corp provided guidance for the third quarter, projecting revenue between $2.7 billion and $2.75 billion, representing a 1% to 3% YoY decline. This outlook is slightly below the analyst consensus of $2.77 billion.
The company also announced a quarterly dividend of $0.09 per share, payable on December 18, 2024, to shareholders of record as of December 10, 2024.
