VF Corp (VFC) Q3 Results Will Show If Its Brands Have Recession-Resistant Power

October 26, 2009 3:57 PM EDT

V.F. Corporation (NYSE: VFC) stock is trading slightly higher ahead of its third quarter earnings release after market close today, October 26, 2009. The stock is up $0.34, about 0.50%, to $78.66.

For Q209, V.F. Corp reported an EPS of $0.68 and revs of $1.485 billion. The Q209 EPS beat estimates by 9 cents, and revenues were just short of expectations. Last year, VF Corp. reported a third quarter EPS of $2.10, and revenue of $2.207 billion. The consensus is that V.F. Corp. will report an EPS of $1.95 with revenues of $2.10 billion for Q309.

V.F. Corp. is up 27% from the last quarter, and about 43% YTD. Their sector, Apparel/Accessories is up about 47% YTD.

According to Bloomberg, 8 have a Buy rating on V.F. Corp. and 4 have a Hold. The analysts' consensus price is $82.00.

Piper Jaffray states that since V.F. generates about 30% of their revenue overseas, dollar weakness may be a benefit to the company. The brand Vans continues to penetrate the Asian marketplace. Vans makes up about 12% of the company, with $850M in annual sales. Jaffray raised their Q309 EPS estimate to $1.95 from $1.85 on better than expected margins and a less-negative impact from foreign currency. The firm also increased their multiples on shares from 14x to 15x. Jaffray maintains their Overweight rating, and has a price target of $85.

Wedbush Morgan analysts commented that "Vans stores continue to report increased traffic and conversion. The stores have delivered Holiday merchandise and apparel inventory is the highest we have seen. While our checks reveal that apparel continues to resonate with the customers we believe that inventory is possibly too high for the traffic we have seen in the stores. Approximately 15% of the floor is reported to be on sale with no footwear markdowns."

UBS initiated their coverage on V.F. Corp. with a Buy rating, and set a price target of $83.

V.F. Corp. will issue its Q309 results via press release at approximately 4:00 PM (EDT) on October 26, 2009. Stay tuned to StreetInsider.com's Earnings section to see our analysis of the highly-anticipated quarterly results within seconds of their release.

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• Piper Jaffray
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