雅虎香港財經 Investing in V.F. (VFC)? Don't Miss Assessing Its International Revenue Trends
Have you evaluated the performance of V.F.'s (VFC) international operations for the quarter ending March 2024? Given the extensive global presence of this maker of brands such as Vans, North Face and Timberland, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
Upon examining VFC's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.
For the quarter, the company's total revenue amounted to $2.37 billion, experiencing a decline of 13.4% year over year. Next, we'll explore the breakdown of VFC's international revenue to understand the importance of its overseas business operations.
Exploring VFC's International Revenue Patterns
APAC generated $377.7 million in revenues for the company in the last quarter, constituting 15.9% of the total. This represented a surprise of +0.69% compared to the $375.1 million projected by Wall Street analysts. Comparatively, in the previous quarter, APAC accounted for $461.6 million (15.6%), and in the year-ago quarter, it contributed $388.7 million (14.2%) to the total revenue.
During the quarter, EMEA contributed $869.9 million in revenue, making up 36.7% of the total revenue. When compared to the consensus estimate of $821.62 million, this meant a surprise of +5.88%. Looking back, EMEA contributed $912.3 million, or 30.8%, in the previous quarter, and $901.3 million, or 32.9%, in the same quarter of the previous year.
International Market Revenue Projections
Wall Street analysts expect V.F. to report a total revenue of $1.88 billion in the current fiscal quarter, which suggests a decline of 10% from the prior-year quarter. Revenue shares from APAC and EMEA are predicted to be 16.2% and 31.2%, corresponding to amounts of $304.6 million and $585.31 million, respectively.
For the full year, the company is projected to achieve a total revenue of $10.24 billion, which signifies a fall of 2.1% from the last year. The share of this revenue from various regions is expected to be: APAC at 15.8% ($1.62 billion) and EMEA at 32.7% ($3.35 billion).
Concluding Remarks
Relying on global markets for revenues presents both prospects and challenges for V.F. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
V.F., bearing a Zacks Rank #5 (Strong Sell), is expected to underperform the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Examining the Latest Trends in V.F.'s Stock Value
Over the preceding four weeks, the stock's value has diminished by 2.4%, against an upturn of 4.8% in the Zacks S&P 500 composite. In parallel, the Zacks Consumer Discretionary sector, which counts V.F. among its entities, has appreciated by 0.3%. Over the past three months, the company's shares have seen a decline of 24% versus the S&P 500's 4.6% increase. The sector overall has witnessed a decline of 4.9% over the same period.
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V.F. Corporation (VFC) : Free Stock Analysis Report
