VF's (VFC) quarter-to-date trends suggest topline improvement in fiscal Q1, but it is likely to be offset by higher promotional intensity, softness in Europe, and mixed trends in China, UBS said in a Monday research report.

The brokerage said it expects in-line fiscal Q1 EPS of -$0.22 on revenue of $1.64 billion. For fiscal 2027, UBS lowered its EPS guidance to $1.05 from $1.10 earlier. The company will report Q1 results on July 29.

For Q1, UBS said it expects margins to be pressured by high discounting, particularly in Vans and Timberland, partly offset by cost discipline and modest channel mix tailwinds.

The brokerage said it reiterated its neutral rating on the stock and price target of $18 per share.

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