VF Corporation’s Hold Rating: Balancing Margin Improvements with Vans Brand Challenges

Analyst Ike Boruchow from Wells Fargo maintained a Hold rating on VF (VFC – Research Report) and decreased the price target to $12.00 from $13.00.

Ike Boruchow has given his Hold rating due to a combination of factors impacting VF Corporation’s performance. The company’s Reinvent initiatives have been successful in improving margins, as evidenced by a significant year-over-year increase in gross margins during the fourth quarter. However, the performance of the Vans brand has been a major concern, with sales falling significantly short of expectations and contributing to a negative outlook for the first half of 2026.
Despite the positive impact of cost-saving measures, the strategic actions taken by VF Corporation have led to a substantial decline in Vans sales, raising concerns about the brand’s future recovery. Additionally, the company’s efforts to manage inventory levels and close underperforming stores have further pressured sales. These challenges, coupled with potential debt issues and the need for a brand repositioning, have led Boruchow to adopt a cautious stance, resulting in a Hold rating for the stock.