Professional
Added to YB: 2024-06-05
Pitch date: 2024-05-28
VFC [bullish]
V.F. Corporation
+67.76%
current return
Author Info
No bio for this author
Company Info
V.F. Corporation, together with its subsidiaries, offers branded apparel, footwear, and accessories for men, women, and children in the Americas, Europe, and the Asia-Pacific.
Market Cap
$5.8B
Pitch Price
$11.72
Price Target
48.00 (+144%)
Dividend
2.40%
EV/EBITDA
8.13
P/E
63.30
EV/Sales
1.18
Sector
Textiles, Apparel and Luxury Goods
Category
turnaround
The Popularity of VF’s Main Brands Provides Confidence That Its Complete Overhaul Will Succeed
VFC to $48: Weak sales (-4% est FY25), margin pressure (4.5% FY24 vs 13% FY22). Turnaround plan aims to cut costs $300M/yr, reduce debt, fix Vans via innovation+supply chain. TNF strong, smaller brands may be sold. Bulls: Vans has 1% share of $164B market, TNF margins to high-teens. Bears: Supreme writedown looms, Vans -10% last 2 yrs. Moat from Vans, TNF, Timberland intangibles. Poor recent M&A, dividend slashed, debt up for Timberland tax hit. Selling brands to cut debt, refocus on Vans & TNF key.
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