VF falls as 3Q revenue misses Wall Street's view
NEW YORK (AP) — Shares of clothing company VF Corp. dropped 4 percent on Monday as its third-quarter revenue missed analysts' estimates and its North Face sales were hurt by weakness in Europe.
THE SPARK: VF Corp. reported that its quarterly revenue climbed 14 percent to $3.12 billion from $2.73 billion, but the performance fell short of the $3.16 billion that analysts surveyed by FactSet expected.
While North Face sales increased 5 percent, its sales in Europe fell by a mid-single digit percentage rate on a constant-dollar basis.
THE ANALYSIS: Kate McShane of Citi Investment Research said in a client note that investors may have been disappointed by The North Face performance. They may also have expected VF's earnings to beat Wall Street's view by more than it did.
The Greensboro, N.C., company reported adjusted earnings of $3.52 per share. Analysts predicted $3.49 per share.
McShane reaffirmed a "Buy" rating and $184 price target.
SHARE ACTION: VF's stock fell $6.68, or 4 percent, to $160.09 in afternoon trading. The shares have traded in a 52-week range of $125.55 to $169.82. For the year to date, the stock is up 27 percent.