VFC - V. F. Corporation: Weaker Performance But Some Restructuring Effect Shows Up

2024-04-28 14:38:09 ET

Summary

• V.F. Corporation's stock price has dropped to lows not seen in over a decade. This is explained by its dismal sales performance recently, even as it generates non-GAAP earnings.
• The company's restructuring has seen some impact, which can be encouraging. It has cut costs and debt and reduced inventory fairly fast.
• But the market has yet to respond to its products, which is key to a turnaround. But with the restructuring showing some impact, it's possible that sales pick up too.

Since the last time I wrote about the skateboarding shoe brand Vans’ owner V.F. Corporation ( VFC ) in January, its price is down by 21%. Even then, the company’s weakening fundamentals inspired little faith in the stock, prompting a Hold rating....

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