Apparel stocks moving in opposite directions: VF loses 6%, Deckers Outdoor gains 6%

VF Corp (NYSE: VFC) slipped 6% in the stock market on Friday morning as the apparel and footwear company reported Q4 profit that fell shy of analysts’ estimates.

VF Corp’s fourth-quarter financial results

VF Corp recorded $89.5 million (£63.02 million) of net income in the fourth quarter (23 cents per share). In Q4 of last year, it had posted $483.8 million of net loss ($1.22 per share). On an adjusted basis, the Denver-based company earned 26 cents per share.

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VF Corp generated $2.583 billion of revenue in the recent quarter versus the year-ago figure of $2.102 billion. According to FactSet, experts had forecast the company to register $2.509 billion of revenue and 29 cents of earnings per share. In the prior quarter (Q3), VF’s revenue had come in at $2.97 billion.

For the full financial year, VF Corp forecasts $11.8 billion of revenue and $3.05 of adjusted per-share earnings. In comparison, analysts are calling for $11.5 billion of revenue and $3.05 billion of adjusted EPS.

VF Corp has roughly 20% of its stores in the EMEA region and 5% in North America that are still closed due to COVID-19 restrictions. At the time of writing, shares of the company are trading at $82 per share compared to the year-to-date low of $76 per share in mid-March.

Deckers reports market-beating quarterly results

Deckers Outdoor Corp (NYSE: DECK), on the other hand, gained 6% in the stock market on Friday morning after reporting market-beating results for its fiscal fourth quarter on Thursday, after the bell.

Deckers recorded $1.18 of earnings per share in Q4. In the same quarter last year, it had earned a much lower 57 cents per share. The Goleta-based company valued its sales in the fourth quarter at $561.2 million that represents a 50% increase on a year over year basis.

According to FactSet, experts had forecast the company to note $447 million of sales and 82 cents of earnings per share. In separate news from the U.S., Foot Locker also published its quarterly earnings report on Friday.

For the full financial year, Deckers now forecasts up to $3 billion of sales. The NYSE-listed company expects its per-share earnings to fall in the range of $14.05 to $14.65 this year. At $331 per share, Deckers is currently over 15% up year-to-date in the stock market. It is now valued at $8.77 billion and has a price to earnings ratio of 23.11.