VF Stock Jumps 16.7% as Q1 Beats Expectations

VF Corp.’s stock rose 16.7 percent to $14.50 in premarket trading as the company topped first-quarter earnings forecasts and saw growth at both The North Face and Timberland.

The quarter’s adjusted operating losses tallied $56 million — much better than the $110 million to $125 million in losses the company forecast. Adjusted losses per share totaled 24 cents, 10 cents better than the 34 cents analysts anticipated, according to Yahoo Finance.

Net losses totaled $116.4 million as sales for the three months ended June 28 were flat at $1.8 billion.

There were multiple signs of progress at the company. The North Face sales rose 6 percent to $557.4 million and Timberland was up 11 percent to $255.1 million.

Vans continued to shrink, with sales down 14 percent to $498 million, but that was attributed to “channel rationalization actions” as the business reoriented.

Bracken Darrell, president and chief executive officer, said in a statement that the brand— once VF’s largest — was being positioned to return to “healthy, sustainable growth.”

For years, Vans ranked as VF’s powerhouse, growing strongly and fueling the company’s expansion, including the acquisition of Supreme. But the brand started to rely too much on its classic looks that were so popular only to see the market move on and the business suffer.

Darrell has been systematically remaking the company, selling off Supreme in October, establishing a new global management structure and bringing in new leadership for the brands.

“As I pass the two-year mark in my role as CEO, we are on track with VF’s transformation,” he said. “We are lowering costs, improving margins, reducing debt and transforming the organization. We have reset the table and soon will move to growth. That is what we are all here for and what the entire organization is now focused on.”