02:07 PM EDT, 08/07/2024 (MT Newswires) -- VF's (VFC) fiscal Q1 results were "not as bad as feared," while "management still has work to do" on the balance sheet, Wedbush Securities said Wednesday in a report.

VF reported a fiscal Q1 adjusted loss Tuesday of $0.33 a share versus Wall Street's expectations for a loss of $0.37. Revenue in the quarter ended June 30 was $1.91 billion, topping estimates of $1.85 billion.

"The company will use the $1.5 billion sale of Supreme to help further deleverage the balance sheet," Webush said.

The company's Vans brand showed early signs of recovery in the EMEA region in fiscal Q1 with sales down only 3%, buoyed by a "much cleaner" marketplace that offered space to introduce new products and scale up recent introductions such as the Vans Knu Skool, Wedbush said.

The North Face showed a "positive trend" with 8% increase in direct-to-consumer sales, Wedbush said.

Though still negative but "less bad," VF's domestic business "is getting more predictable," the report said.

Wedbush raised its price target on VF stock to $16 from $13 and reiterated its neutral rating on the stock.

VF shares jumped 9% in recent trading Wednesday.

Price: 17.92, Change: +1.48, Percent Change: +9.00