VFC - V.F. Corporation: Q4 Earnings A Supreme Disaster (Rating Downgrade)

2024-05-23 08:00:00 ET

Summary

• V.F. Corp. reported disappointing Q4 and full-year fiscal 2024 earnings, leading to a double-digit drop in share price.
• In this update, I review VFC's Q4 report, with an emphasis on its top segments Vans and The North Face, as well as the progress made in reducing debt.
• I also share my thoughts on the recent asset sale rumors and whether a third dividend cut might be appropriate given the disappointing cash flow guidance for fiscal 2025.

Introduction

Since its pre-pandemic high of nearly $100, the stock of apparel and footwear company V.F. Corporation (VFC) has been an outright disaster. I was never particularly bullish on VFC stock, and it took me a very long time to finally consider it worthy of a small position in my portfolio ( my coverage here ). However, even since my first bullish note , the appointment of a new CEO with solid turnaround experience and two dividend cuts (in February and October 2023 ), the stock has only known one direction - down....

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