V.F. Corporation (VFC) | Investment Case

1. Company Snapshot

1.a. Company Description

V.F. Corporation, together with its subsidiaries, engages in the design, procurement, marketing, and distribution of branded lifestyle apparel, footwear, and related products for men, women, and children in the Americas, Europe, and the Asia-Pacific.It operates through three segments: Outdoor, Active, and Work.The company offers outdoor, merino wool and other natural fibers-based, lifestyle, and casual apparel; footwear; equipment; accessories; outdoor-inspired, performance-based, youth culture/action sports-inspired, streetwear, and protective work footwear; handbags, luggage, backpacks, and totes; and work and work-inspired lifestyle apparel and footwear.

It provides its products under the North Face, Timberland, Smartwool, Icebreaker, Altra, Vans, Supreme, Kipling, Napapijri, Eastpak, JanSport, Dickies, and Timberland PRO brand names.The company sells its products primarily to specialty stores, department stores, national chains, and mass merchants, as well as sells through direct-to-consumer operations, including retail stores, concession retail stores, and e-commerce sites, and other digital platforms.V.F. Corporation was founded in 1899 and is headquartered in Denver, Colorado.

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1.b. Last Insights on VFC

V.F. Corporation's recent performance was positively driven by its Q2 earnings and revenue beat, with quarterly earnings of $0.51-$0.52 per share, surpassing the Zacks Consensus Estimate of $0.42 per share. The company's Reinvent program is driving progress toward cost savings and profitability. Core brands The North Face and Timberland showed solid growth, while the Dickies divestiture accelerates deleveraging and strengthens the balance sheet. Management remains optimistic about the turnaround strategy, despite challenges from tariffs and declining Vans sales.

1.c. Company Highlights

Last Price	19.05
Change Percentage	2.58%
Open	18.6
Previous Close	18.57
Market Cap ( Millions)	7443
Volume	5557993
Year High	29.02
Year Low	9.41
M A 50	15.18
M A 200	14.4

FCF Yield	-5.80%
Dividend Yield	1.89%
ROE	6.09%
Debt / Equity	391.86%
Net Debt / EBIDTA	654.92%
Price To Book	5.04
Price Earnings Ratio	82.37
Price To FCF	-17.23
Price To sales	0.78
EV / EBITDA	15.62

2. V.F. Corporation's Q2 FY2026 Earnings: A Strong Performance Amidst Uncertainty

V.F. Corporation reported a total revenue of $2.83 billion, up 2% in reported dollars and down 1% in constant dollars, outperforming guidance. The company's operating income was $330 million, exceeding the range of $260 million to $290 million. Earnings per share (EPS) came in at $0.52, beating analyst estimates of $0.42. The adjusted gross margin for the quarter was flat versus last year, as the benefit from fewer discounts was offset by FX headwinds.

Publication Date: Oct -30

                                    📋 Highlights
                                    Revenue Performance::
                                                Total revenue rose 2% in reported dollars (1% decline in constant dollars), exceeding guidance, with operating income surging to $330M, surpassing the $260M–$290M forecast.
Debt Reduction::
                                                Net debt (excluding leases) fell $1.5B (27%), reflecting progress toward a 2.5x leverage target by 2028, aided by brand divestitures like Dickies ($600M sale at 1.2x EV/sales).
Brand Growth Drivers::
                                                North Face (+4%), Timberland (+4%), and Altra (+35%) outperformed, while Vans declined 11% but showed marketing and product recovery signs, including improved digital traffic.
Margin Challenges::
                                                Adjusted gross margin remained flat amid FX pressures and tariffs, with SG&A up 1% YoY, though operating margin improved 40 bps to 11.8%.
Future Guidance::
                                                Q3 revenue expected down 1–3% (constant dollars), with operating income guided to $275M–$305M, and long-term goals targeting $500M–$600M operating income growth by 2028.

                                

Segment Performance

The company's key brands, including The North Face and Timberland, delivered strong performances, with revenue growth of 4% each. Altra accelerated further, with revenue up over 35% versus last year. Vans revenue was down 11% versus last year, but the brand is making progress, with product newness drawing in new consumers. According to Bracken Darrell, "the shift in marketing strategy is starting to yield results, with digital traffic trends improving in the Americas and EMEA."

Balance Sheet and Cash Flow

Net debt, excluding lease liabilities, decreased by $1.5 billion, or 27%. Inventories were down 4% or $86 million at the end of the quarter, excluding Dickies from both periods. Free cash flow through Q2 was negative $453 million, in line with expectations.

Outlook and Valuation

The company expects Q3 revenue to be down 1% to down 3% on a constant dollar basis, excluding Dickies in both this year and last year. Q3 operating income is expected to be in the range of $275 million to $305 million. With a P/E Ratio of -120.13 and an EV/EBITDA of 13.89, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 0.6%, which may be challenging to achieve given the current macroeconomic environment.

Dividend and Leverage

V.F. Corporation has a Dividend Yield of 2.47%, indicating a relatively attractive yield for investors. The company's Net Debt / EBITDA ratio is 6.52, which is expected to decrease as the company deleverages. According to Bracken Darrell, the company aims to achieve a leverage ratio of 2.5x or below by fiscal '28.

3. NewsRoom

4 Cold-Weather Stocks to Buy as Winter Spending Heats Up

Nov -16

Source: marketbeat.com

V.F. Corp. Sold Dickies to Bluestar Alliance: Here's What You Should Know

Nov -14

Source: zacks.com

VF Corporation Completes Sale of Dickies® to Bluestar Alliance

Nov -12

Source: businesswire.com

VFC DEADLINE ALERT: ROSEN, NATIONAL INVESTOR RIGHTS COUNSEL, Encourages V.F. Corporation Investors to Secure Counsel Before Important November 12 Deadline in Securities Class Action - VFC

Nov -12

Source: newsfilecorp.com

Levi & Korsinsky Notifies Shareholders of V.F. Corporation(VFC) of a Class Action Lawsuit and an Upcoming Deadline

Nov -11

Source: globenewswire.com

VFC INVESTOR ALERT: Bronstein, Gewirtz & Grossman LLC Announces that VF Corp. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit

Nov -11

Source: globenewswire.com

Class Action Lawsuit Alert: Levi & Korsinsky Reminds V.F. Corporation (VFC) Investors of November 12, 2025 Deadline

Nov -11

Source: newsfilecorp.com

Portnoy Law Firm Announces Class Action on Behalf of VF Corporation Investors

Nov -11

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.13%)

6. Segments

Outdoor

Expected Growth: 1.2%

The Outdoor segment's 1.2% growth is driven by increasing consumer participation in outdoor activities, a growing demand for sustainable and eco-friendly products, and V.F. Corporation's strategic investments in e-commerce and digital marketing, which have enhanced the segment's online presence and customer engagement.

Active

Expected Growth: 1.1%

V.F. Corporation's 1.1% active segment growth is driven by increasing outdoor enthusiast demographics, rising demand for sustainable and eco-friendly products, and strategic acquisitions expanding its portfolio of outdoor brands. Additionally, the company's focus on digital transformation and e-commerce growth initiatives contribute to its steady growth.

Work

Expected Growth: 0.9%

V.F. Corporation's 0.9 growth is driven by its diversified portfolio of outdoor and action sports brands, such as The North Face and Timberland, which cater to the growing demand for sustainable and outdoor lifestyle products. Additionally, the company's strategic acquisitions and investments in digital marketing and e-commerce capabilities have enhanced its online presence and fueled growth.

Other

Expected Growth: 0.8%

V.F. Corporation's 'Other' segment growth is driven by increasing demand for outdoor and action sports, expansion of The North Face and Timberland brands, and strategic investments in digital marketing and e-commerce platforms, resulting in 0.8% growth.

7. Detailed Products

The North Face

Outdoor apparel, footwear, and equipment

Timberland

Outdoor footwear, apparel, and accessories

Wrangler

Denim jeans and casual apparel

Lee

Denim jeans and casual apparel

Dickies

Workwear and casual apparel

JanSport

Backpacks, luggage, and outdoor gear

Eastpak

Backpacks, luggage, and accessories

Kipling

Backpacks, luggage, and accessories

Napapijri

Outdoor apparel and accessories

Icebreaker

Merino wool activewear

8. V.F. Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for V.F. Corporation is medium due to the presence of alternative products in the market, but the company's strong brand portfolio and diversified product offerings mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers for V.F. Corporation is low due to the company's strong brand recognition and diversified product offerings, which reduce the bargaining power of individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for V.F. Corporation is medium due to the presence of multiple suppliers in the market, but the company's large scale of operations and diversified supply chain mitigate this threat.

Threat Of New Entrants

The threat of new entrants for V.F. Corporation is low due to the high barriers to entry in the industry, including high capital requirements and the need for established distribution networks.

Intensity Of Rivalry

The intensity of rivalry for V.F. Corporation is high due to the presence of several established competitors in the market, leading to intense competition for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	79.06%
Debt Cost	3.95%
Equity Weight	20.94%
Equity Cost	11.56%
WACC	5.54%
Leverage	377.55%

11. Quality Control: V.F. Corporation passed 1 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Ralph Lauren

A-Score: 5.6/10

Value: 2.6

Growth: 6.1

Quality: 6.7

Yield: 3.0

Momentum: 8.5

Volatility: 6.7

1-Year Total Return ->

Kontoor Brands

A-Score: 5.1/10

Value: 3.9

Growth: 4.0

Quality: 5.8

Yield: 7.0

Momentum: 5.0

Volatility: 4.7

1-Year Total Return ->

Albany International

A-Score: 4.1/10

Value: 4.4

Growth: 4.9

Quality: 4.9

Yield: 3.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

PVH

A-Score: 4.0/10

Value: 7.3

Growth: 4.3

Quality: 5.1

Yield: 0.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

A-Score: 3.4/10

Value: 5.0

Growth: 1.7

Quality: 2.8

Yield: 6.0

Momentum: 2.5

Volatility: 2.3

1-Year Total Return ->

Under Armour

A-Score: 3.4/10

Value: 7.6

Growth: 2.1

Quality: 5.1

Yield: 0.0

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

50.93%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.54%

V.F. Corporation - US9182041080

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on VFC

1.c. Company Highlights

Higher Yield

Lower Growth

Lower Quality

Earnings Miss

Revenues Miss

Earnings Beats

Revenues Beats

Medium Volatility

Average Quality

Strong Momentum

2. V.F. Corporation's Q2 FY2026 Earnings: A Strong Performance Amidst Uncertainty

Segment Performance

Balance Sheet and Cash Flow

Outlook and Valuation

Dividend and Leverage

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.13%)

6. Segments

Outdoor

Expected Growth: 1.2%

Active

Expected Growth: 1.1%

Work

Expected Growth: 0.9%

Other

Expected Growth: 0.8%

7. Detailed Products

The North Face

Timberland

Wrangler

Lee

Dickies

JanSport

Eastpak

Kipling

Napapijri

Icebreaker

8. V.F. Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: V.F. Corporation passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.05$

Current Price

19.05$

Potential

-0.00%

12.e Scoring ^Insights

12.f DCF ^BETA