V.F. Corporation VFC is likely to register a year-over-year top-line decline when it posts fourth-quarter fiscal 2026 results on May 20, before the opening bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.13 billion, indicating a 0.7% dip from the prior-year quarter’s figure.
The consensus estimate for earnings is pegged at a loss of a penny per share, which compares favorably with the year-ago quarter’s loss of 13 cents a share. The metric has been stable in the past 30 days.
V.F. Corp. delivered an earnings surprise of 34.9% in the last reported quarter. In the trailing four quarters, the company’s earnings beat the Zacks Consensus Estimate by 25.9%.
Key Factors to Influence VFC’s Q4 Results
V.F. Corp.’s quarterly results are likely to reflect several headwinds, including persistent brand-specific and structural challenges. The company’s Vans brand has been under pressure, struggling to adapt to shifting consumer preferences and heightened competition in the casual footwear space. Weak demand in North America and uneven global momentum highlight the brand’s ongoing challenges. The lack of innovation and fresh product cycles has hurt consumer excitement, leaving Vans vulnerable to competition from both lifestyle and performance-oriented footwear brands. Our model predicts Vans' revenues to decline 5.2% year over year in the fourth quarter of fiscal 2026.
Additionally, the company is also facing elevated cost pressures, including expenses tied to demand-creation investments, and ongoing restructuring and transformation costs. In addition, limited pricing flexibility in certain brands, particularly Vans, and a still-competitive promotional landscape are constraining margin recovery.
Meanwhile, tough macroeconomic headwinds, including tariff pressures, are likely to have had a meaningful negative impact on margins during the quarter. Although pricing actions and sourcing savings are expected to have offset some of the pressures, tariffs remain a significant headwind in the quarter under review. Such factors, along with strategic actions such as value-channel rationalization and store closures, are likely to have weighed on revenues during the to-be-reported quarter. On its last earnings call, management had projected Vans' revenues to decline roughly mid-single digits and adjusted operating income between $10 million and $30 million for the quarter under review. Our model predicts adjusted operating income to decline 2.6% year over year in the fourth quarter of fiscal 2026.
On the flip side, the company’s transformation program, Reinvent, which targets enhancing focus on brand-building and improving the operating performance, appears encouraging. The plan focuses on objectives, including enhancing the North America performance, Vans’ turnaround, reducing costs and strengthening the balance sheet. Ongoing investments in digital and supply-chain capabilities further enhance efficiency. On its last earnings call, management had expected adjusted gross margin to be flat to slightly up year over year and adjusted selling, general and administrative costs to be flat to slightly down.
V.F. Corporation Price and EPS Surprise
V.F. Corporation price-eps-surprise | V.F. Corporation Quote
What the Zacks Model Unveils for VFC
Our proven model doesn’t conclusively predict an earnings beat for V.F. Corp. this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
V.F. Corp. has an Earnings ESP of 0.00% and a Zacks Rank of 1.
Valuation Picture of VFC Stock
Going by the price/earnings ratio, VFC stock is currently trading at 14.47 on a forward 12-month basis, lower than 16.41 of the Textile - Apparel industry. Also, it is trading lower than its high of 21.42.
The recent market movements show that VFC’s shares have gained 23.3% in the past six months against the industry's 5.9% decline.
Stocks With the Favorable Combination
Here are three companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle:
Ralph Lauren Corporation RL currently has an Earnings ESP of +0.97% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for fourth-quarter fiscal 2026 earnings per share is pegged at $2.49, up 9.7% year over year. Ralph Lauren’s top line is also expected to have increased year over year. The consensus estimate for quarterly revenues is pegged at $1.84 billion, which indicates an increase of 8.3% from the figure reported in the prior-year quarter. RL has a trailing four-quarter earnings surprise of 9.7%, on average.
lululemon athletica inc. LULU currently has an Earnings ESP of +0.47% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports first-quarter fiscal 2026 numbers. The Zacks Consensus Estimate for LULU’s quarterly earnings per share of $1.69 indicates a decrease of 35% year over year.
LULU has a trailing four-quarter earnings surprise of 7.9%, on average. The consensus estimate for LULU’s quarterly revenues is pegged at $2.44 billion, indicating a rise of 2.8% from the figure reported in the prior-year quarter.
PVH Corp. PVH currently has an Earnings ESP of +0.18% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports first-quarter fiscal 2026 numbers. The Zacks Consensus Estimate for PVH’s quarterly earnings per share of $1.80 indicates a decrease of 21.7% year over year.
PVH has a trailing four-quarter earnings surprise of 14.2%, on average. The consensus estimate for PVH’s quarterly revenues is pegged at $2.00 billion, indicating a rise of 0.7% from the figure reported in the prior-year quarter.
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V.F. Corporation (VFC): Free Stock Analysis Report
Ralph Lauren Corporation (RL): Free Stock Analysis Report
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PVH Corp. (PVH): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).