VF Corporation’s Strategic Reset and Financial Uncertainties Lead to Hold Rating

BTIG analyst Janine Stichter has reiterated their neutral stance on VFC stock, giving a Hold rating yesterday.

Janine Stichter’s rating is based on a combination of strategic and financial factors affecting VF Corporation. The company is undergoing a strategic reset, particularly with its Vans brand, which involves reducing less profitable distribution channels. While these actions are expected to stabilize by the end of the fiscal year, they currently weigh on the brand’s performance, creating uncertainty about the brand’s optimal size and market position.
Financially, VF Corporation showed some positive signs with better-than-expected operating income and gross margin improvements in the fourth quarter. However, the decline in Vans revenue, due to both strategic actions and weak direct-to-consumer traffic, poses challenges. The company’s valuation, while below historical levels, aligns with these uncertainties, leading to a Hold rating as the market awaits clearer signs of top-line improvement and brand revitalization.

According to TipRanks, Stichter is a 4-star analyst with an average return of 6.7% and a 44.91% success rate. Stichter covers the Consumer Cyclical sector, focusing on stocks such as Boot Barn, VF, and On Holding AG.

In another report released yesterday, BMO Capital also maintained a Hold rating on the stock with a $15.00 price target.