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VF Corp Is A 'Compelling Turnaround Story': Analyst Explains Why
VFCVF(VFC) Benzinga·2025-02-12 19:56

Core Viewpoint - VF Corporation is viewed as a compelling turnaround story with significant potential for growth, particularly as it recovers from a challenging period marked by an 80% drop in earnings per share [1][2]. Financial Performance - The analyst projects that VF Corporation's FY28 earnings per share (EPS) will exceed 2.00,comparedtoapro−formaFY24EPSof2.00, compared to a pro-forma FY24 EPS of 0.64, excluding Supreme [2]. - The stock price could potentially reach 40within2−3years,especiallyconsideringitspeakofaround40 within 2-3 years, especially considering its peak of around 100 before the pandemic [2]. Debt Management - VF Corporation previously had over 6billioninnetdebt,butaftersellingSupremefor6 billion in net debt, but after selling Supreme for 1.5 billion and other non-core assets, net debt is now approximately 3.3billion[2].−Thecompanyisexpectedtocontinuereducingdebt,whichwillenhanceprofitandlossperformanceandprovidegreateroperationalflexibility[3].ManagementStrategy−CEOBrackenDarrellisimplementingaplanfocusedonimprovingefficiencyandmargins,rejuvenatingtheVansbrand,andreducingdebtleverage[1].MarketPerformance−Asofthelastcheck,VFCorporationsharesaretradinglowerby0.613.3 billion [2]. - The company is expected to continue reducing debt, which will enhance profit and loss performance and provide greater operational flexibility [3]. Management Strategy - CEO Bracken Darrell is implementing a plan focused on improving efficiency and margins, rejuvenating the Vans brand, and reducing debt leverage [1]. Market Performance - As of the last check, VF Corporation shares are trading lower by 0.61% at 24.20 [3].