V.F. Corp Gears Up for Q1 Earnings Amid Vans Restructuring Pressures

V.F. Corporation VFC is likely to register a year-over-year decline in its top and bottom lines when it posts first-quarter fiscal 2026 earnings on July 30, before the opening bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.7 billion, indicating an 11.2% decline from the prior-year quarter’s figure.The consensus estimate for loss is pegged at 34 cents per share, wider than the 33 cents reported in the year-ago period. Notably, the earnings estimate has remained stable in the past 30 days.V.F. Corporation Price, Consensus and EPS Surprise V.F. Corporation price-consensus-eps-surprise-chart | V.F. Corporation QuoteV.F. Corp delivered an earnings surprise of 13.3% in the last reported quarter. In the trailing four quarters, the company delivered an earnings surprise of 36.9%.Things to Know Ahead of VFC’s Q1 EarningsV.F. Corp is likely to report a year-over-year revenue decline in its upcoming first-quarter fiscal 2026 results, pressured by continued brand-specific and structural headwinds. Management has guided for revenues to fall 3-5% on a constant currency basis, citing ongoing impacts from strategic reset actions at Vans and lingering softness in consumer traffic. As the fiscal first quarter is seasonally the company’s smallest quarter but disproportionately affected by Vans’ performance, any further deterioration in the brand’s momentum could weigh heavily on consolidated results.Vans continues to be a drag on top-line performance, with management indicating that first trends would mirror the 20% decline seen in the fourth quarter of fiscal 2025. The fiscal first quarter will reflect the full impact of earlier store closures, value channel exits and distressed inventory reductions, all part of a deliberate plan to clean up the marketplace and reset the brand for profitable growth. While these actions are setting a stronger foundation, these are expected to continue distorting year-over-year comparisons through at least the first half of fiscal 2026. Notably, management does not expect a visible improvement in Vans’ financial performance until the back-to-school or holiday season.Additionally, foreign exchange is expected to have a modest unfavorable impact on the fiscal first-quarter results, adding another layer of pressure to top-line performance. Management remains focused on transformation goals under its Reinvent strategy, including cost structure optimization, improved brand focus and balance sheet deleveraging. The company did not provide fiscal 2026 guidance but reiterated expectations for operating margin expansion in fiscal 2026 despite macro and brand-specific challenges.On the positive side, the gross margin is expected to remain strong, benefiting from lower input costs, fewer promotions and an improved inventory mix. These tailwinds, which helped drive a 560 basis-point gross margin improvement in fourth-quarter fiscal 2025, are likely to carry into first-quarter fiscal 2026, even as operating leverage remains limited. VFC expects an operating loss of $110-$125 million for first-quarter fiscal 2026. Meanwhile, SG&A expenses are forecasted to be flat to slightly down year over year, with cost savings from the Reinvent program offsetting investments in product development and marketing.What the Zacks Model Unveils for VFC StockOur proven model does not 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 chance of an earnings beat, which is 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 -15.00% and currently carries a Zacks Rank of 3.Valuation Picture of VFC StockV.F. Corp stock is trading at a premium valuation relative to the industry. Per the price-to-earnings ratio, the stock is currently trading at 13.87X forward 12-month price-to-earnings ratio, higher than 11.49X for the Textile - Apparel industry.Image Source: Zacks Investment ResearchThe recent market movements show that VFC’s shares have gained 8.2% in the past three months compared with the industry's growth of 1.1%.Image Source: Zacks Investment ResearchStocks With the Favorable CombinationHere are some companies that, according to our model, have the right combination of elements to beat on earnings this reporting cycle. Ralph Lauren RL currently has an Earnings ESP of +1.02% and a Zacks Rank of 2. RL is likely to register a top-line increase when it reports first-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.64 billion, indicating an 8.7% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for Ralph Lauren’s earnings is pegged at $3.43 per share, implying a 27.04% jump from the year-ago quarter. RL delivered an earnings surprise of 8.9% in the last quarter.Planet Fitness PLNT presently has an Earnings ESP of +1.48% and a Zacks Rank of 2. The company is expected to register increases in its top and bottom lines when it reports second-quarter 2025 numbers. The Zacks Consensus Estimate for PLNT’s quarterly revenues is pegged at $333.5 million, which indicates growth of 10.8% from the prior-year quarter’s reported figure.The consensus mark for Planet Fitness’ quarterly earnings has been unchanged in the past 30 days at 79 cents per share. The estimate indicates an increase of 11.3% from the year-ago quarter’s actual. PLNT delivered an earnings surprise of 6.9% in the trailing four quarters, on average.Royal Caribbean Cruises RCL currently has an Earnings ESP of +0.72% and a Zacks Rank of 3. RCL is likely to register growth in its top and bottom lines when it reports second-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.55 billion, indicating 10.6% growth from the figure reported in the year-ago quarter.The consensus estimate for Royal Caribbean’s earnings is pegged at $4.10 per share, implying a 27.7% increase from the year-earlier quarter. The consensus mark for earnings has been upbound  cents in the past 30 days. RCL has a trailing four-quarter earnings surprise of 8.7%, on average.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report V.F. Corporation (VFC): Free Stock Analysis Report Ralph Lauren Corporation (RL): Free Stock Analysis Report Planet Fitness, Inc. (PLNT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks