Analysts Unfazed By VF Corp's Slower Growth

Despite slower growth at key sportswear brands, VF Corp's (NYSE: VFC) recent third-quarter performance drew applause from Wall Street analysts.

Growth slowed to 11 percent, from 16 percent in the second quarter at the company's outdoor and action sports segment.

The segment, which includes the North Face and Timberland brands, accounted for nearly two-thirds of the company's $3.52 billion in revenue for the recent period.

VF's "jeanswear" segment, which includes the Lee and Wrangler brands, continued to grow at a 1 percent rate with sales topping $605 million, while total revenue grew 7 percent, compared with 8 percent in the previous period.

D.A. Davidson's Andrew Burns rates VF a Buy and said the growth slowdown "appears temporary" and stemmed from a shift in outdoors shipment timing into the fourth quarter" in Europe. Burns boosted his target to $78 from $75.

Bank of America's Robert F. Ohmes thinks fourth-quarter revenue growth will top 10 percent. The shift in outdoor shipments to the fourth quarter, improved sales in China and gains in department-store sales of jeans will help sales growth, Ohmes said.

Ohmes, who maintained a Buy rating and $73 target, nonetheless trimmed his 2015 earnings forecast by 1.4 percent citing a weaker Euro and higher costs for synthetic textiles.