North Face owner VF Corp skyrockets as results signal faster recovery
Published: 10:17 29 Oct 2024 EDT
VF Corp (NYSE:VFC, ETR:VFP) shares soared over 27% on Tuesday morning after the apparel company unveiled a return to profit in its second quarter.
Earnings per share sat at $0.52 against a $1.16 loss in the second quarter of last year, the North Face and Vans owner revealed in results on Monday evening.
This came on the back of a 120 basis point increase in gross margins to 52.2% against a year earlier, as revenue fell by 6% to $2.8 billion.
“Our results [...] reflect a sequential and broad-based improvement in year-on-year trends,” chief executive Bracken Darrell commented.
Darrell added VF was on track to meet a $300 million savings target by the end of 2025, while its Americas platform showed “promising signs” and the performance of its Vans brand was improving.
Jefferies analysts noted revenue and gross margins outdid market expectations, adding the results signalled a “faster recovery trajectory”.
“Work still [needs] to be done, but evidence of execution and conservatism bolsters the turnaround narrative,” analysts said.
Shares jumped by 27.3% on Tuesday.
