VF(VFC) Benzinga·2025-01-30 18:25Core Viewpoint - Goldman Sachs analyst Brooke Roach maintains a Neutral rating on VF Corp (VFC) shares and raises the price target from 25, citing a strong third-quarter performance but a cautious fourth-quarter revenue forecast due to various factors [1]. Group 1: Financial Performance - VFC reported a broad-based third-quarter beat and raised its full-year 2025 free cash flow guidance [1]. - The company achieved year-over-year revenue growth for the first time in nine quarters, driven by growth across all regions and strong performances from The North Face (TNF) and Timberland [2]. - Positive year-over-year sell-through for Vans in the U.S. non-value channel during the holiday season was noted, along with solid gross margin expansion due to easier comparisons to last year's inventory reset, product cost tailwinds, and lower promotional activity [3]. Group 2: Cost Management and Strategy - Greater-than-expected savings in SG&A costs were highlighted, with management on track to achieve approximately 300 million in SG&A run-rate savings by the end of FY25 [4]. - The company is also focused on ongoing debt reduction, aiming to meet its medium-term leverage target of 2.5x or lower by FY28 [4]. - The analyst views the quarter as a significant indication of early progress with VFC's Reinvent plan and expresses optimism about the business's margin trajectory, particularly regarding SG&A [4]. Group 3: Future Outlook - The analyst is looking forward to a more detailed update on the recent performance and future strategy of each brand during the second segment of the company's Investor Day, scheduled for March 6 [5]. - VFC shares are currently trading higher by 4.65% at 26.75 [5].