Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
V.F. Corporation (VFC): Supreme’s Exit Isn’t Enough—What Does the Broader Turnaround’s Success Hinge Upon?
VF Corporation (VFC) posted Q2 FY2025 results that showed sequential improvement, with revenues of $2.76B, beating expectations by $42.18M, though down 6% YoY. Adjusted EPS of $0.60 exceeded forecasts by $0.23, reflecting operational efficiencies, but GAAP EPS of $0.13 missed by $0.26, highlighting non-operational challenges. The Vans brand showed a sequential recovery, benefiting from improved inventory management and refreshed product offerings. The North Face and Timberland also showed resilience, while Dickies continues to stabilize and macroeconomic pressures in China persist. VF’s profitability metrics were strong, with a 120 basis point YoY gross margin improvement. The company’s cost-saving program, Reinvent, delivered $65 million in Q2 savings, contributing to overall profitability. VF has also reduced its net debt by $450 million YoY and is strategically focusing on stabilizing the U.S. market, particularly improving Vans’ performance. While the company anticipates further sequential improvement in Q3, challenges remain in the DTC channel and in China. Despite the positive momentum, VF’s 31.66x NTM P/E valuation remains unattractive, and clear evidence of sustained growth, especially for Vans and in the Americas, is needed to unlock valuation upside. What are the critical factors that will determine the success of VF’s broader turnaround strategy, especially in the U.S. and at Vans?
