03:06 PM EST, 01/21/2025 (MT Newswires) -- V.F (VFC) is likely to beat its fiscal Q3 earnings estimates by $0.03 per share as sales growth modestly improved during the quarter, UBS said in an earnings preview Tuesday.

The firm is forecasting Q3 earnings of $0.37 per share, compared with consensus of $0.34 per share.

The firm further said it expects Q3 sales to decline 0.5% year over year to $2.87 billion, versus the consensus estimate of down 1.2% after adjusting for the sale of the Supreme brand. According to the firm's research, the company's direct to consumer sales in US improved during Q3 as Vans, North Face, and Timberland saw increased web traffic. However, UBS observed weak trends in China.

The bar for the fiscal Q3 event would be for the company to demonstrate that its financial performance was getting less challenged quarter over quarter and that the trend would continue.

UBS said the options market was pricing a 9.2% change in the stock's price in either direction following the earnings release versus a 5.4% historical average jump. "We agree with the options market's view," UBS wrote.

The firm has a neutral rating on the stock with a price target of $24.

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