Group 1 - Curreen Capital reported a return of 10.5% in Q4 2025 and 30.97% for the full year, focusing on "ugly ducklings" that are well-managed and attractively priced [1] - The firm highlighted V.F. Corporation (NYSE:VFC) as a key investment, noting its market capitalization of $7.665 billion and a stock price of $19.59 per share as of January 30, 2026 [2] - V.F. Corporation has experienced a 3.98% return in the past month but is down 20.43% over the past twelve months, indicating volatility in its stock performance [2] Group 2 - V.F. Corporation has improved its balance sheet, capital allocation, and management team to drive growth, with a favorable upside-to-downside ratio in its current trading position [3] - Despite the potential of V.F. Corporation, it is not among the 30 most popular stocks among hedge funds, with a decrease in hedge fund portfolios holding the stock from 35 to 33 [4] - The company is compared unfavorably to certain AI stocks that are perceived to offer greater upside potential and less downside risk [4]

Investment Rating - The industry rating is "Recommended" [5] Core Insights - Anta announced on January 26, 2026, the acquisition of 29.06% of Puma SE for a total of €1.506 billion (approximately ¥12.278 billion), becoming its largest shareholder. This transaction is a key step in Anta's globalization strategy, aiming to integrate its operational capabilities with Puma's global platform, which has an annual revenue exceeding €8.8 billion (2024) [2][14] - Adidas achieved a record high revenue of €24.811 billion in 2025, with operating profit of €2.056 billion exceeding market expectations. The operating profit margin increased by 2.6 percentage points to 8.3%, and the gross profit margin rose to 51.6% [2][14] - VF Corporation reported a revenue of $2.82 billion in Q3 of FY2026, a 4% year-on-year increase (2% growth at constant currency), with a 6% growth in the Americas region after excluding the impact of the sold Dickies brand [3][14] Summary by Sections Investment Recommendations - Manufacturing: Strong expectations for upstream price increases, with wool prices rising since Q3 2025 and domestic cotton prices also starting to rise. Recommended stocks include Baolong Oriental, New Australia, and Fuchun Dyeing & Weaving, with beneficiaries being Taihua New Materials. For growth-oriented midstream, recommended stocks are Jiansheng Group and Kairun Co [3][15] - Brand: Recent signs of recovery in high-end consumption, with potential inflation in 2026 benefiting the consumer sector. Recommended brands with profit elasticity include Jinhong Group, Ge Li Si, Luolai Life, and Stable Medical [3][15] - Procter & Gamble's industrial chain: Recommended stocks include Jieya Co (benefiting from brand-owned capacity transfer), with beneficiaries being Yanjing Co [3][15] Market Review - The SW textile and apparel sector rose by 0.64%, outperforming the Shanghai Composite Index by 1.08%. The top five gainers in the sector included Harsen Co, Zhongwang Fabric, Hongda High-Tech, Mingxin Xuteng, and Aokang International [16] - The main inflow of funds was into Harsen Co, with a net inflow ratio of 10.10%, while the largest outflow was from Sanfu Outdoor, with a net outflow ratio of 4.59% [16][22] Industry Data Tracking - Wool prices increased by 2.49% this week, with a year-to-date increase of 41.94%. The Australian wool market index reached 1689 AUD cents/kg, equivalent to ¥82,085.40/ton [4][35] - The cotton price index in China rose by 3.84% year-to-date, with the 3128B index at ¥16,183/ton [30][32] - In 2025, textile and apparel exports decreased by 2.26% year-on-year, with total exports amounting to $267.79 billion [52]

Core Viewpoint - VF Corporation reported better-than-expected financial results for Q3 of FY2026, with a slight revenue increase of 2% to $2.876 billion, excluding the sale of the Dickies brand, revenue rose from $168 million to $301 million [1][2] Financial Performance - Revenue for the Active Segment, which includes Vans, reached $672 million, down 6.2% year-over-year, with a loss of $4.6 million, marking the first loss for this segment [3][4] - Vans' global revenue decreased by 8% year-over-year in the last three months, with declines of 7% in the Americas, 20% in the Asia-Pacific, and 6% in Europe; over the past nine months, global revenue fell by 10% [5][6] Brand Analysis - Vans, once a leading brand for VF Corporation, is now the only core asset experiencing continuous negative growth, contrasting with the performance of The North Face and Timberland [8][9] - The decline in Vans' sales is attributed to changing consumer preferences and a lack of innovation in its product offerings, which are perceived as overly simplistic compared to competitors [9][11] Strategic Adjustments - VF Corporation is undergoing a restructuring of Vans, including the closure of 140 stores globally, which represents about 20% of its retail network, and a redesign of existing stores [12][14] - The company is attempting to diversify Vans' product line by reducing reliance on classic styles and enhancing women's product lines and collaborations [14] Market Position and Future Outlook - Despite Vans' cultural significance and global recognition, its ability to convert these assets into purchasing power in the new consumer cycle remains uncertain, raising questions about its future viability [14]

Core Viewpoint - VF Corp is facing a challenging market environment with its stock trading at $19.11, slightly above Goldman Sachs' price target of $18, indicating potential downside [1][2][5] Financial Performance - Goldman Sachs' price target suggests a potential downside of approximately -5.81% from the current trading price, aligning closely with the estimated fair value of VFC stock at around $18.3 [2] - The stock has experienced a decrease of 5.77%, or $1.17, reflecting market volatility [2] - VF Corp maintains a market capitalization of approximately $7.47 billion, with a 52-week high of $29.02 and a low of $9.41, indicating fluctuations in its financial position [4] Strategic Moves - The company has returned to organic growth in the third quarter following the divestment of its Dickies brand, aiming to streamline operations and focus on core brands [3][5] - Despite the return to growth, the earnings turnaround is marked by volatility, with significant variation in performance across different brands and markets [3] Brand Performance - The Vans brand continues to show weakness, impacting VF Corp's overall performance amidst market volatility [4][5]

Core Viewpoint - VF Corp (NYSE:VFC) is a significant player in the apparel and footwear industry, with Goldman Sachs maintaining a Neutral rating and raising its price target from $16 to $18 while advising investors to hold their positions [1][5]. Financial Performance - VF Corp reported strong third-quarter earnings, with earnings of $0.58 per share, exceeding the FactSet consensus of $0.45 [2][5]. - Revenue increased by 1.5% year-over-year, reaching $2.88 billion, surpassing analysts' estimates of $2.75 billion, driven by a successful holiday season for The North Face and Timberland [2][5]. - The company's gross margin improved by 30 basis points to 56.6%, aided by a favorable product mix and sourcing savings that offset tariff impacts [3]. - Operating income rose to $289 million, up from $226 million the previous year [3][5]. Stock Performance - VF Corp's stock price is currently at $19.11, having decreased by 5.77% or $1.17 recently [4]. - The stock has traded between a low of $17.80 and a high of $19.23 on the current day, with a yearly high of $29.02 and a low of $9.41 [4]. - The company's market capitalization is approximately $7.47 billion, with a trading volume of 19,049,705 shares on the NYSE [4].

Core Viewpoint - VF Corporation reported stronger-than-expected third-quarter results, but shares fell over 8% intraday despite improving profitability and cash flow trends for fiscal 2026 [1] Financial Performance - The company posted third-quarter earnings of $0.58 per share, exceeding analyst expectations of $0.45 [1] - Revenue totaled $2.88 billion, up 2% in constant currency and above the consensus estimate of $2.75 billion [1] - Adjusted gross margin increased to 57%, up 10 basis points from a year earlier [2] - Operating margin expanded 30 basis points to 12.1% [2] - Operating income rose to $341 million from $318 million in the prior-year quarter [2] Future Projections - For the fourth quarter of fiscal 2026, VF Corporation projected revenue ranging from flat to up 2% year over year [3] - Adjusted operating income is expected to be between $10 million and $30 million for the fourth quarter [3] - For the full fiscal year, the company forecasts higher free cash flow, adjusted operating income, and operating cash flow compared with the prior year [3]

Core Viewpoint - The article emphasizes the investment philosophy focused on identifying mispriced securities through understanding the financial drivers of small cap companies, utilizing DCF model valuation to assess risk-to-reward dynamics. Group 1: Investment Philosophy - The investment strategy is centered on small cap companies across US, Canadian, and European markets [1] - The approach is flexible, not confined to traditional investment categories like value, dividend, or growth investing, but considers all prospects of a stock [1] Group 2: Valuation Methodology - A DCF model valuation is highlighted as a key tool in revealing the true value of a company's financials [1] - This methodology aims to uncover potential investment opportunities by analyzing the underlying financial drivers [1]

Key Takeaways VFC posted Q3 EPS of 58 cents and revenues of $2.88B, beating estimates despite earnings falling Y/Y.VFC saw strength from The North Face and Timberland, with the Americas delivering its best results. DTC sales returned to growth and it beat revenue and operating income guidance under the Reinvent program.V.F. Corporation (VFC) reported third-quarter fiscal 2026 results, with a sales and earnings beat. While earnings fell year over year, revenues increased. Nevertheless, the company is on trac ...

Core Insights - VF Corp's president and CEO Bracken Darrell expressed optimism about Vans' turnaround strategy, indicating that it is "starting to deliver" as the company focuses on refreshing the brand's product lineup [1] Financial Performance - Vans experienced a 10% decline in revenue during the third quarter of fiscal 2026, yet global digital e-commerce sales grew for the first time in over four years, particularly driven by the Americas region [2] Online and In-Store Traffic - The CEO highlighted an increase in online traffic during Q3, emphasizing the need to boost in-store traffic as a key goal for the brand [3] - The company is exploring various strategies to enhance store traffic, viewing it as a critical aspect of their growth strategy [3] Product Development and Trends - New product styles such as the Super Lowpro, Skate Loafer, and Crosspath XC models showed "consistently strong trends" in Q3, alongside signature silhouettes like Authentic and Slip-On benefiting from increased interest in skate-inspired shoes from high fashion brands [3] - The company is launching premium elevated products and plans to introduce them into wholesale channels over time, reflecting a positive outlook from the team [4] Collaboration and Market Responsiveness - A recent successful collaboration was the "K-Pop Demon Hunters" project, which demonstrated the brand's ability to bring products to market quickly, achieving a turnaround from idea to store shelf in just 10 weeks [4] Long-Term Strategy - Darrell emphasized the importance of patience in the turnaround process, advising against forcing changes too quickly and allowing the strategy to develop naturally [4]

Financial Performance - Revenues for the three months ended December 2025 were $2,875,801, an increase of 1.5% compared to $2,833,912 in December 2024[11] - Operating income for the three months ended December 2025 was $289,054, up 28.0% from $225,777 in the same period last year[11] - Net income for the three months ended December 2025 was $300,845, compared to $167,780 in December 2024, reflecting a significant increase[14] - Earnings per share for continuing operations were $0.77 for the three months ended December 2025, compared to $0.43 in December 2024[11] - The company reported a comprehensive income of $323,600 for the three months ended December 2025, compared to $286,875 in the same period last year[14] - Net income for the nine months ended December 2025 was $374,202, compared to a loss of $38,928 in the same period of 2024[17] - Total revenues for the nine months ended December 2025 were $7,439.2 million, an increase from $7,360.9 million in the same period of 2024, representing a growth of 1.1%[51] - Earnings per share from continuing operations increased to $0.96 for the nine months ended December 2025, compared to $0.56 for the same period in 2024[113] Assets and Liabilities - Total current assets increased to $4,982,112 as of December 2025, compared to $3,786,098 in March 2025[9] - Total liabilities rose to $8,647,186 as of December 2025, up from $7,890,177 in March 2025[9] - Total stockholders' equity increased to $1,784,443 as of December 2025, compared to $1,487,359 in March 2025[9] - Cash and cash equivalents increased to $1,466,469 as of December 2025, compared to $429,382 in March 2025[9] - Total inventories as of December 2025 were $1,658.7 million, a decrease from $1,794.5 million in December 2024, reflecting improved inventory management[63] - Working capital increased to $1,765.0 million in December 2025 from $1,088.2 million in March 2025, reflecting higher cash balances[202] - The current ratio improved to 1.5 to 1 in December 2025 compared to 1.4 to 1 in March 2025, indicating better liquidity[202] - Net debt to total capital ratio decreased to 70.1% in December 2025 from 76.8% in March 2025, primarily due to a reduction in net debt following the early redemption of $750.0 million of long-term notes[203] Cash Flow and Investments - Cash provided by operating activities for continuing operations was $637,968, an increase from $609,545 in the previous year[17] - Total cash, cash equivalents, and restricted cash at the end of December 2025 was $1,479,558, up from $1,371,309 in December 2024[20] - Proceeds from the sale of businesses, net of cash sold, amounted to $600,524, a decrease from $1,485,951 in the prior year[17] - Capital expenditures for the nine months ended December 2025 were $(87,318), compared to $(64,299) in the same period of 2024[17] - Cash dividends paid during the nine months ended December 2025 were $(105,508), slightly up from $(105,094) in the same period of 2024[24] Segment Performance - The company reported a total of $1,237.4 million in wholesale revenue for the three months ended December 2025, compared to $1,250.9 million in the same period of 2024, indicating a decrease of 1.1%[50] - Direct-to-consumer revenue for the three months ended December 2025 was $1,626.0 million, up from $1,565.6 million in December 2024, reflecting a growth of 3.9%[50] - Segment profit for the Outdoor segment was $407.7 million, while the Active segment reported a loss of $4.6 million, resulting in a total segment profit of $403.1 million for the three months ended December 2025[110] - Global revenues for The North Face increased by 8% and 7% in the three and nine months ended December 2025, respectively, compared to the 2024 periods, with a 3% and 2% favorable impact from foreign currency[181] - Global revenues for Timberland increased by 8% in both the three and nine months ended December 2025, compared to the 2024 periods, including a 3% favorable impact from foreign currency[182] - Global revenues for the Active segment decreased by 6% and 8% in the three and nine months ended December 2025, respectively, compared to the 2024 periods, despite a 3% and 2% favorable impact from foreign currency[184] Impairments and Charges - The company experienced a decrease in goodwill impairment from $51,000 in December 2024 to $30,716 in December 2025[11] - The company recorded a goodwill impairment charge of $30.7 million for the Napapijri reporting unit, reducing its carrying value to an estimated fair value of $31.6 million[122] - The Company recorded $4.5 million in impairment charges related to right-of-use assets during the three and nine months ended December 2025[70] - The company incurred a pension settlement charge of $34.0 million related to the termination of the U.S. qualified plan for the three months ended December 2025[111] Taxation - The effective income tax rate for the nine months ended December 2025 was 25.8%, up from 16.1% in the same period of 2024[96] - The net discrete tax expense for the nine months ended December 2025 was $4.0 million, primarily due to a $7.3 million tax expense related to stock compensation[96] - VF's provision for income taxes is deemed adequate, with no material impact expected from ongoing examinations[101] Strategic Initiatives and Restructuring - VF Corporation completed the sale of the Dickies brand business on November 12, 2025, and the Supreme brand business on October 1, 2024[33][34] - The company is focused on aligning its portfolio with strategic objectives to maximize growth and returns to shareholders[52] - The company has entered into a contract with a consulting firm for up to $146 million to support its transformation program, with $75 million contingent on stock price increases[118] - All restructuring actions related to Reinvent were substantially complete by the end of the first quarter of Fiscal 2026[157] Foreign Currency and Hedging - The company is actively analyzing the impact of U.S. tariffs on its business and implementing mitigation strategies[151] - VF's most significant foreign currency exposure relates to business conducted in euro-based countries, affecting financial results[146] - The notional amounts of all outstanding foreign currency exchange forward contracts were $3.7 billion at December 2025, up from $3.1 billion at March 2025[128] - VF recognized a total loss of $14.709 million on cash flow hedging relationships for the three months ended December 2025[131] Other Comprehensive Income - VF's accumulated other comprehensive loss (OCL) as of December 2025 was $1,001,286,000, an increase from $977,740,000 in March 2025 and $951,485,000 in December 2024[90] - The foreign currency translation and other component of OCL improved to $(746,238,000) in December 2025 from $(821,189,000) in March 2025[90] - The defined benefit pension plans component of OCL decreased slightly to $(178,810,000) in December 2025 from $(180,047,000) in March 2025[90]