Canaccord Genuity Remains Bullish Following V.F. Corp.'s (VFC) 4Q Miss

Canaccord Genuity maintained a Buy rating on VF Corp. (NYSE: VFC), and cut the price target to $82.00 (from $83.00), following the company's 4Q earnings report. VFC's Q4 adjusted EPS of 95c missed consensus estimate of $1.01. The miss was driven by lower revenue growth, and lower gross margin.

Analyst Camilo Lyon commented, "VFC's Q4 adjusted EPS of 95c missed our 99c estimate (consensus was $1.01). The miss was driven by lower revenue growth (-8c) and lower gross margin (-4c), partially offset by lower SG&A growth (+3c) and lower tax rate (+4c). To little surprise, the key factor behind the miss was unseasonably warm weather that significantly impacted The North Face and Timberland. While aggressive markdowns were taken to sell through product, inventory was elevated (+9% vs. sales -4.6%). That said, just ~half the growth (or $65M) is carry-over fall product that should sell in fall '16 at full margin. Sales/EPS guidance for 2016 of MSD/5%, respectively, implies ~$3.24, roughly in line with our previous $3.27 estimate but far lower than Street's $3.42. We believe this guidance takes an appropriately conservative stance but leaves room for upside, particularly if cold weather hits early in the season and VFC can accommodate at-once orders."

For an analyst ratings summary and ratings history on VF Corp. click here. For more ratings news on VF Corp. click here.

Shares of VF Corp. closed at $58.55 yesterday.

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