V.F. Corporation VFC posted first-quarter 2017 results, wherein adjusted earnings of 55 cents per share came in line the Zacks Consensus Estimate. However, the bottom line declined 3% on a currency-neutral basis.

V.F. Corporation Price, Consensus and EPS Surprise

V.F. Corporation Price, Consensus and EPS Surprise | V.F. Corporation Quote

Earnings Estimate Revision: The Zacks Consensus Estimate for 2017 has been stable over the past 30 days. Further, in the trailing four quarters, excluding quarter under review, the company has outpaced the Zacks Consensus Estimate by an average of 2.1%.

Revenues: V.F. Corp. generated net sales of $2,555.7 million that declined about 2% year over year and also fell short of the Zacks Consensus Estimate of $2,749.3million. Total revenue, including royalty income came in at $2,581.7 million, down 2% year over year. On a currency neutral basis, revenue fell 1%.

Key Events: On Apr 4, 2017, V.F. Corp. has inked a deal to divest its Licensed Sports Group business that consists of the Majestic brand, to Fanatics, Inc. The deal is anticipated to close in the second quarter.

On Aug 26, 2016, V.F. Corp. concluded the sale of its Contemporary Brands businesses, which included the 7 For All Mankind, Splendid and Ella Moss brands, to Delta Galil Industries Ltd. Thereafter, the company recorded all results from thesebusiness under discontinued operations.

The company bought back 8.2 million shares worth $438 million in the first quarter. Further, in Mar 2017, management authorized a program to buy back about $5 billion.

Outlook: In 2017, the company expects revenues to grow at a low single-digit percentage rate which includes a 2 percentage point negative effect due to foreign currency headwinds. The company envisions earnings per share for 2017 to decline at a low single-digit percentage rate in comparison to 2016 adjusted earnings per share of $2.98 per share. However, the same is anticipated to increase at a mid-single-digit percentage rate on a constant-currency basis.

Zacks Rank: Currently, V.F. Corp. carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Check back later for our full write up on V.F. Corp.’s earnings report!

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