A month has gone by since the last earnings report for V.F. (VFC). Shares have added about 3.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is V.F. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

V.F. Corporation Q3 Earnings Miss Estimates

V.F. Corporation reported third-quarter fiscal 2024 earnings, wherein the top and bottom lines missed the Zacks Consensus Estimate. Both metrics also declined year over year. The quarterly results were hurt by a shift in the timing of the wholesale deliveries, mostly pronounced for The North Face and the EMEA regions.

Q3 Highlights

V.F.’s adjusted earnings of 57 cents per share plunged 49.1% year over year and missed the Zacks Consensus Estimate of 79 cents.

Net revenues of $2,960.3 million fell 16% year over year and came below the consensus estimate of $2,995 million. At constant currency (cc), revenues also dipped 17% year over year.

Revenues in the Americas declined 24% year over year on a reported basis and 25% at cc. In the EMEA region, revenues fell 7% (down 12% at cc). Revenues in the APAC region increased 2% on a reported basis (up 3% at cc). This included Greater China revenues, which were up 5% and 7% at cc. The company’s international revenues were down 5% year over year on a reported basis (down 8% at cc).

Channel-wise, wholesale and direct-to-consumer revenues were down 26% and 8%, respectively, year over year on a reported basis. Meanwhile, our model estimated wholesale revenues and direct-to-consumer revenues to decline 6% and 6.5%, respectively. At cc, wholesale revenues fell 28%. Revenues for the direct-to-consumer channel dropped 9%.

The adjusted gross margin rose 40 basis points (bps) to 55.3%. The metric reflected 175 bps of a favorable mix, partly offset by a 135 bps adverse rate impact. Operating loss was $32.2 million against an operating income of $516 million in the year-ago period.

Segmental Details

Revenues in the Outdoor segment dipped 13% to $17.4 billion (down 15% at cc) versus our estimate of 3% growth. The Active segment reported revenues of $999.4 million, down 21% year over year on a reported basis and 22% at cc. Our model predicted Active revenues to decline 19%. Revenues in the Work segment fell 17% year over year (down 18% at cc) to $222.3 million compared with our estimate of a 16% decline.