The underperformance of VF Corp's third-quarter results has led to the impending departure of CFO Matt Puckett later this year. After the earnings report, the VF Corp stock moved 14% down but closed the day with an indecision formation with a 9% loss. Also, the growth forecast of this stock is not supportive, which could be a challenging factor to consider before opening a long position.
VF Corp Q3 Earnings Report Review
Like other apparel and footwear companies, Timberland's parent company encountered weak wholesale demand during the present fiscal year. This can be attributed to retailers reducing their inventories in response to lax discretionary spending in the United States. The subpar performance was the primary factor contributing to the 16 percent decline in revenue during the third quarter.
The organization observed sluggish demand throughout the critical holiday purchasing season. In response to the consistent quarterly decline in Vans footwear sales among consumers in the United States, VF Corp initiated more intensive national promotional activities. Revenue for the third quarter amounted to $2.96 billion, which was lower than analysts' average forecast of $3.24 billion.
VFC Stock Technical Analysis
In the daily chart of VFC stock price, the current price trades with a downside pressure, which came after an immediate selling pressure from the fundamental release.
As a result, steep selling pressure has come below the dynamic 20 EMA but closed the day as an indecision. However, the price grabbed sufficient trendline liquidity, which could fuel the possible bull run.
Investors should monitor how the price trades below the 14.91 swing low, indicating a market selling pressure. In that case, a rebound with a daily close above the 17.09 level could increase the price above the 20.69 resistance level.
However, extensive downside pressure is possible towards the 12.84 support area before forming any bullish signal.
