11:52 AM EDT, 08/05/2024 (MT Newswires) -- VF's (VFC) fundamentals remain "challenged" as the apparel, footwear and accessories group's major brands continue to face pressures, Wedbush said Monday in a report.

The company's fundamentals are expected to be back in focus when it releases its fiscal Q1 results Tuesday, after "non-fundamental developments" fueled a recent rally in the shares starting in late May when VF last reported results, the investment firm said. These developments include the hiring of a new Vans brand president and the pending sale of Supreme, according to the note.

"VF has been one of the more fundamentally challenged companies in our coverage post-COVID, and based on our checks, we believe the company continues to do poorly," Wedbush said.

Among VF's major brands, Wedbush said Vans is "the biggest focus area" and it does not yet see evidence of turnaround emerging at the key brand, which was one of the hottest brands before the pandemic.

Another VF brand, The North Face, is also struggling "as consumers continue to be reluctant to look towards outdoor brands at the moment," Wedbush said, citing the recent third consecutive negative-growth quarter for competitor Columbia Sportswear's (COLM) core brand.

Wedbush is projecting a fiscal Q1 loss per share of $0.39 for VF, compared with a consensus estimate of a $0.37 loss per share. It expects fiscal 2025 and 2026 EPS of $0.62 and $0.90, respectively, below analysts' estimates of $0.72 and $1.10.

Wedbush has a neutral rating on the stock and a price target of $13.

Shares of VF were down 1.9% in recent trading.

Price: 15.76, Change: -0.30, Percent Change: -1.87