UPDATE: Piper Jaffray Color On VFC Q4

Piper Jaffray, which raised its PT on shares of VF Corp. (NYSE: VFC), is providing some color on the stock, and is raising its FY11 estimate.

“Jeanswear costs are expected to increase by a mid-teens percentage for the full year, with larger cost increases in the back half of the year,” Piper Jaffray writes. “Despite price increases to offset higher costs, the domestic jeanswear gross margin is expected to decline by over 350bps in FY11.

“However, the company expects global jeanswear operating margin to decline less than 100bps due to int'l mix shifts, SG&A leverage, and improved inventory position. Management expects operating margins for all other coalitions to remain flat or improve in FY11.”

“We are raising our FY11 estimate to $7.07 given management's guidance,” Piper Jaffray adds. “Our estimate assumes 8.4% revenue growth, a 13.2% operating margin and a 25.5% tax rate. We have also introduced our FY12 estimate of $7.78 which assumes 6.1% revenue growth, a 13.7% operating margin and 26% tax rate.”

VF Corp. closed Tuesday at $96.52.