07:55 AM EDT, 05/23/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month price target by $5 to $10, based on 12.5x our FY 26 (Mar.) EPS estimate and above the company's 2-year average forward P/E multiple of 11.4x, as we look through another "transformation" year. We lower our FY 25 EPS estimate by $1.10 to $0.40 and initiate our FY 26 EPS estimate at $0.80. VFC posts normalized Q4 FY 24 EPS of ($0.32) vs. $0.17, $0.33 below consensus estimates on revenues of $2.37B vs. $2.74B and $35M below estimates. By brand in Q4, North Face revenues declined 5% Y/Y, Vans declined 26%, Timberland declined 14%, and Dickies declined 15%. The Americas region was especially weak with revenues down 22%, while APAC and EMEA were down just 3% each. Inventory declined 23% Y/Y to $1.8B. We worry about the continued decline in Vans, which shows no signs of slowing, and the company's elevated leverage ($5.7B in debt with $1B due over the next 12 months). VFC guided for just $600M in free cash flow in FY 25 and includes the benefit of non-core asset sales.