What Happened?
A number of stocks jumped in the morning session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025.
Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Modern Fast Food company Shake Shack (NYSE:SHAK) jumped 5.1%. Is now the time to buy Shake Shack? Access our full analysis report here, it’s free.
- Personal Care company Herbalife (NYSE:HLF) jumped 7.9%. Is now the time to buy Herbalife? Access our full analysis report here, it’s free.
- Apparel and Accessories company VF Corp (NYSE:VFC) jumped 8.6%. Is now the time to buy VF Corp? Access our full analysis report here, it’s free.
- Wireless, Cable and Satellite company Altice (NYSE:ATUS) jumped 5.9%. Is now the time to buy Altice? Access our full analysis report here, it’s free.
- Defense Contractors company Kratos (NASDAQ:KTOS) jumped 6%. Is now the time to buy Kratos? Access our full analysis report here, it’s free.
Zooming In On VF Corp (VFC)
VF Corp’s shares are extremely volatile and have had 30 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock dropped 12% on the news that the company reported weak first quarter 2025 results: Its EPS missed and its revenue guidance for next quarter fell short of Wall Street's estimates.
Despite changes to drive a turn around, steep sales declines in Vans and Dickies segments (down 22% and 14% y/y respectively) outweighed gains from The North Face and Timberland brand.
Margins, however, told a different story. Adjusted operating margin turned positive, driven by lower discounting and stronger inventory controls. Despite these gains, the lift wasn't enough to offset the revenue pressure, which held earnings growth back. Overall, this was a softer quarter.
VF Corp is down 38.3% since the beginning of the year, and at $13.28 per share, it is trading 50.7% below its 52-week high of $26.93 from January 2025. Investors who bought $1,000 worth of VF Corp’s shares 5 years ago would now be looking at an investment worth $213.58.
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