Buckingham Research has reiterated its Neutral rating on V.F. Corp but lowered its price target to $58 from $60 on growth concerns. While V.F. Corp delivered earnings that beat analyst estimates by five cents per share, revenue fell short of expectations by $130 million.
Analysts had initially anticipated a slowdown in Vans shoe sales but that wasn't the case, Vans actually grew 10 percent sequentially in the quarter. Weakness from Jeanswear coalition weighed on the company's sales.
U.S. Business Remains A Concern; International Business Is Healthy
Several retail bankruptcies and an inventory hangover could have an impact on V.F. Corp's fourth quarter. "Unless the weather turns much colder quickly, this could continue to impact VFC's results in 4Q16," said Buckingham Research analysts.
Analysts also noted that most of the company's issues were U.S. related, and that its international business continues to perform well, up 5 percent.
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