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VF (VFC)
NYSE:VFC
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VF (VFC) AI Stock Analysis

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VFC

VF

(NYSE:VFC)

Rating:55Neutral
Price Target:
$15.00
▲(0.20% Upside)
The overall stock score of 55 reflects significant financial challenges, including declining revenue and high leverage, which weigh heavily on the score. Technical analysis shows positive momentum, but valuation concerns due to a high P/E ratio limit attractiveness. The earnings call provides a cautiously optimistic outlook with some positive brand growth, but challenges remain with certain brands and external pressures. The stock is currently in a recovery phase, but investors should be cautious due to financial instability.
Positive Factors
Cost Management
Operating margin increased due to better gross margins from Vans initiatives and faster savings from the Reinvent program.
Debt Management
VFC expects an increase in free cash flow, which should help fund debt repayment.
Financial Performance
1Q26 results exceeded estimates, and 2Q26 revenue guidance is better than expected.
Negative Factors
Brand Performance
The company's poor outlook for the Vans brand continues with no signs of improvement, adding pressure to VF Corp's overall performance.
Debt Challenges
Debt and unclear direction weigh heavily on VF Corp, making it challenging for the company to accelerate sales and improve brand positioning while managing significant net debt.
Inventory Management
VFC's inventory is approximately $500M above its optimum level, with no clear objectives on inventory turnover.

VF (VFC) vs. SPDR S&P 500 ETF (SPY)

VF Business Overview & Revenue Model

Company DescriptionVF Corporation (VFC) is a global leader in the apparel, footwear, and accessories sectors, known for its diverse portfolio of iconic brands including The North Face, Vans, Timberland, and Dickies. Founded in 1899, VF operates in various markets, providing high-quality products that cater to outdoor, active, and lifestyle consumers. The company emphasizes sustainability and innovation in its offerings, targeting various demographics through its wide-ranging product lines.
How the Company Makes MoneyVF Corporation generates revenue primarily through the sale of branded apparel, footwear, and accessories across multiple channels, including wholesale, direct-to-consumer (DTC) retail stores, and e-commerce. The company's key revenue streams include wholesale distribution to department stores, specialty retailers, and online marketplaces, as well as direct sales through its owned retail locations and websites. Significant partnerships with retailers and collaborations with influencers and athletes enhance brand visibility and drive sales. Additionally, VF's commitment to sustainability and innovation attracts environmentally conscious consumers, further contributing to its earnings.

VF Key Performance Indicators (KPIs)

Any
Any
Top Brands Revenue Growth
Top Brands Revenue Growth
Chart Insights
Data provided by:Main Street Data

VF Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Oct 17, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative elements. The company demonstrated strong financial management with better-than-expected performance and significant cost reductions. Growth in brands like North Face, Timberland, and Altra is a positive sign. However, challenges remain with the Vans brand and anticipated tariff impacts, which will pressure margins. Overall, the sentiment is cautiously optimistic, with an emphasis on transformation and future growth opportunities.
Q1-2026 Updates
Positive Updates
Improved Financial Performance
V.F. Corporation delivered above guidance for Q1 fiscal '26, with a loss of $56 million, which was $50 million ahead of the high end of guidance and better than last year.
Significant Cost Reduction
The company has reduced over $300 million in costs, with an additional $500 million to $600 million improvement in net operating income targeted.
North Face and Timberland Growth
The North Face brand grew 5%, and Timberland saw a 9% increase, driven by strong performance in footwear and bags, along with a successful marketing strategy.
Altra Brand Expansion
Altra reported growth of over 20%, increasing from $60 million to potentially exceeding $250 million this year.
Warped Tour Success
The Warped Tour events saw overwhelming demand, selling out 170,000 tickets quickly, indicating strong brand affinity and potential for increased merchandising.
Improved Balance Sheet
Net debt decreased by $1.4 billion, a 20% reduction compared to the previous year, with a clear path to reducing leverage to below 2.5x by fiscal 2028.
Negative Updates
Vans Revenue Decline
Vans revenue fell 15% in Q1, heavily impacted by channel rationalization, contributing to approximately 40% of the decline.
Tariff Impact
An anticipated $250 million to $270 million annualized impact from tariffs, with $60 million to $70 million expected to affect fiscal '26 gross profit.
Gross Margin Pressure
While Q1 gross margin improved, the outlook for Q2 is flat, indicating challenges in maintaining margin expansion amid external pressures.
Company Guidance
During the V.F. Corporation's First Quarter Fiscal Year 2026 Earnings Conference Call, the company reported an improvement in its top-line trend to negative 2% in constant dollars, with a flat performance on a reported basis. The North Face brand grew 5%, while Vans saw a 15% decline, and Timberland experienced a 9% increase. The company's adjusted gross margin improved by 200 basis points to 54.1%, and the adjusted operating margin increased by 270 basis points to negative 3.2%. Inventories rose 4%, but net debt decreased by $1.4 billion. For the second quarter, V.F. Corporation expects revenues to decline by 2% to 4% in constant dollars and projects operating income between $260 million and $290 million. Tariff impacts are anticipated to be mitigated over time, with a net negative effect on gross profit of $60 million to $70 million for fiscal 2026. The company reaffirmed its medium-term targets of achieving a 55% gross margin and reducing leverage to 2.5x by fiscal 2028.

VF Financial Statement Overview

Summary
VF Corporation faces significant financial challenges. The income statement reveals declining revenue and profitability, while the balance sheet shows high leverage and poor return on equity. Cash flow management is also a concern, with declining free cash flow growth. The company needs to focus on improving profitability, reducing debt, and enhancing cash flow to strengthen its financial position.
Income Statement
45
Neutral
The income statement shows declining revenue and profitability. The TTM data reveals a negative net profit margin of -0.60%, indicating losses. Revenue growth is negative, with a decline of 1.52% in the TTM period. Gross profit margin remains relatively stable at 44.01%, but EBIT and EBITDA margins are low at 5.48% and 7.50%, respectively. The company faces challenges in maintaining profitability and reversing revenue declines.
Balance Sheet
40
Negative
The balance sheet indicates high leverage with a debt-to-equity ratio of 4.39 in the TTM period, suggesting significant financial risk. Return on equity is negative at -3.92%, reflecting poor profitability. The equity ratio is low, indicating a heavy reliance on debt financing. The company needs to improve its equity position and reduce debt to enhance financial stability.
Cash Flow
50
Neutral
Cash flow analysis shows a decline in free cash flow growth by 47.38% in the TTM period, indicating cash flow challenges. The operating cash flow to net income ratio is low at 0.09, suggesting limited cash generation relative to net income. However, the free cash flow to net income ratio is relatively better at 0.62, indicating some ability to generate cash despite net losses. The company needs to improve cash flow management to support operations.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue9.50B9.50B9.92B11.09B11.84B9.24B
Gross Profit5.13B5.08B5.11B5.80B6.46B4.87B
EBITDA693.70M578.91M208.53M1.14B1.93B861.21M
Net Income-47.24M-189.72M-968.88M118.58M1.39B407.87M
Balance Sheet
Total Assets10.15B9.38B11.61B13.99B13.34B13.75B
Cash, Cash Equivalents and Short-Term Investments642.39M429.38M676.94M814.89M1.28B1.41B
Total Debt5.68B5.37B7.43B8.15B6.80B7.36B
Total Liabilities8.86B7.89B9.95B11.08B9.81B10.70B
Stockholders Equity1.29B1.49B1.66B2.91B3.53B3.06B
Cash Flow
Free Cash Flow186.97M339.21M803.60M-917.05M535.97M1.04B
Operating Cash Flow299.95M465.24M1.01B-655.79M864.29M1.31B
Investing Cash Flow1.39B1.43B-172.26M-188.05M903.74M-2.90B
Financing Cash Flow-1.77B-2.15B-959.62M463.91M-1.27B1.05B

VF Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14.97
Price Trends
50DMA
12.79
Positive
100DMA
12.57
Positive
200DMA
16.66
Negative
Market Momentum
MACD
0.68
Negative
RSI
69.09
Neutral
STOCH
75.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VFC, the sentiment is Positive. The current price of 14.97 is above the 20-day moving average (MA) of 13.53, above the 50-day MA of 12.79, and below the 200-day MA of 16.66, indicating a neutral trend. The MACD of 0.68 indicates Negative momentum. The RSI at 69.09 is Neutral, neither overbought nor oversold. The STOCH value of 75.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VFC.

VF Risk Analysis

VF disclosed 37 risk factors in its most recent earnings report. VF reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

VF Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$8.95B22.3620.93%2.35%2.90%182.72%
77
Outperform
$17.99B24.8332.55%1.08%9.61%21.14%
72
Outperform
$4.13B9.649.32%0.17%-1.14%-29.30%
71
Outperform
$4.41B17.6958.07%2.56%3.47%5.86%
67
Neutral
$3.09B14.3512.93%2.12%0.81%4.86%
61
Neutral
$17.96B13.14-5.29%3.00%1.25%-13.95%
55
Neutral
$5.80B68.327.83%2.40%-7.41%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VFC
VF
14.97
-2.34
-13.52%
COLM
Columbia Sportswear
57.52
-22.59
-28.20%
PVH
PVH
89.33
-5.46
-5.76%
RL
Ralph Lauren
320.75
150.43
88.32%
LEVI
Levi Strauss & Co
22.55
4.49
24.86%
KTB
Kontoor Brands
80.40
10.15
14.45%

VF Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
VF Corporation Updates Credit Agreement Strategy
Neutral
Aug 27, 2025

On August 26, 2025, V.F. Corporation entered into a new Credit Agreement with several financial institutions, including Wells Fargo and Bank of America, replacing its previous Five-Year Revolving Credit Agreement. The new agreement provides a $1.50 billion senior secured revolving credit facility with a termination date of August 26, 2030, and includes various subfacilities for international borrowings. The facility allows for multicurrency borrowings and includes an uncommitted accordion feature to increase the facility size up to $2.00 billion. The agreement is secured by the company’s assets and guaranteed by its subsidiaries. On August 27, 2025, the company terminated its previous credit commitments, marking a significant shift in its financial strategy.

DividendsBusiness Operations and StrategyFinancial Disclosures
VF Announces Quarterly Dividend Amid Strong Q1’26 Performance
Positive
Jul 30, 2025

On July 30, 2025, VF Corporation announced a quarterly dividend of $0.09 per share, payable on September 18, 2025. The company realigned its reportable segments in the first quarter of Fiscal 2026, affecting segment reporting but not consolidated results. VF’s Q1’26 earnings exceeded expectations, with revenue reaching $1.8 billion, flat compared to the previous year. The North Face and Timberland brands showed strong performance, while Vans faced challenges due to channel rationalization. The company reported an adjusted operating loss that was significantly better than guidance, and net debt decreased by $1.4 billion compared to the previous year.

Executive/Board ChangesShareholder Meetings
VF Corporation Holds Annual Shareholders Meeting
Neutral
Jul 24, 2025

On July 22, 2025, V.F. Corporation held its Annual Meeting of Shareholders where shareholders voted on several key issues. All twelve director nominees were elected, the compensation for VF‘s named executive officers was approved, and PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for the 2026 fiscal year.

Executive/Board Changes
VF Appoints Michael E. Phillips as New CAO
Neutral
May 30, 2025

V.F. Corporation has announced the appointment of Michael E. Phillips as Vice President, Chief Accounting Officer, effective June 1, 2025. This follows the retirement of Bryan H. McNeill, who has served the company for nearly 30 years. Phillips, who has been with the company since 2010, brings extensive experience in financial reporting and auditing, which is expected to support the company’s financial operations and strategic goals.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 27, 2025