What Happened?

Shares of lifestyle clothing conglomerate VF Corp (NYSE:VFC) jumped 6.3% in the morning session after fellow clothing brand Gap (NYSE:GAP) reported strong third-quarter results that blew past analysts' profits and earnings expectations. The improved results and observations of strong demand heading into the holiday season helped Gap raise its sales forecast for the fiscal year. This positive trend likely influenced sentiment toward peers such as V.F. Corporation (VFC) and Abercrombie & Fitch (ANF), which are also positioned to benefit from strong spending in apparel.

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What The Market Is Telling Us

VF Corp’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 24 days ago when the stock gained 28.3% on the news that the company reported third-quarter results that blew past analysts' EBITDA and EPS expectations. In addition, its constant currency revenue outperformed Wall Street's estimates. Notably, guidance for the next quarter implied continued sequential improvement in sales relative to the declines recorded since the start of CY'24. In terms of the regional breakdown, APAC reported positive year on year growth, partially offsetting the declines recorded in other regions. Moving to the bottom line, management confirmed that the business is on track to achieve the $300 million savings target by the end of FY25. Overall, it was a great quarter for the company, highlighting significant improvements.

VF Corp is up 6% since the beginning of the year, but at $19.76 per share, it is still trading 11.3% below its 52-week high of $22.26 from October 2024. Investors who bought $1,000 worth of VF Corp’s shares 5 years ago would now be looking at an investment worth $228.36.

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