We came across a bullish thesis on V.F. Corporation (VFC) on wallstreetbets subreddit page by Embarrassed-End4105. In this article, we will summarize the bulls’ thesis on VFC. V.F. Corporation (VFC)’s share was trading at $17.03 as of Oct 28th. VFC’s trailing and forward P/E were 111.90 and 27.47 respectively according to Yahoo Finance.
VF Corporation (VFC), a prominent apparel company, owns a diverse range of popular brands, including Vans, Timberland, and Dickies. Operating within the lifestyle and outdoor apparel markets, VFC is known for developing iconic brands that resonate with consumers. Among its lineup, Vans stands out as a flagship brand, widely recognized for its skateboarding heritage and punk-rock cultural appeal.
VFC’s CEO, Bracken Darrell, is expected to reinstate revenue and earnings guidance at the company’s highly anticipated upcoming Investor Day—a potential turnaround point following a year of strategic moves and management restructuring. Darrell has been notably reserved about positive developments so far, building anticipation for this announcement. In a recent earnings call, he hinted at providing substantial forward-looking guidance, signaling a shift towards improved performance.
One of the critical developments at VFC has been the strategic restructuring of Vans, especially in terms of inventory management. Over the past year, Vans has streamlined its inventory, minimized discount sales, and now benefits from eight months of stable sales data, positioning the brand for higher-margin revenue. The company has recalibrated its key product lines, such as UltraRange, MTE, KNU Skool, and Classics, with a new focus on franchise management. According to Darrell, this strategy aims to “take the gas out” of older styles and prioritize fresh launches inspired by key influencers. A major catalyst for this renewed focus is the return of the Vans Warped Tour in 2025, which is anticipated to boost the brand’s visibility and rekindle interest in classic Vans designs. This rebranding push is supported by the recent appointment of a new Vans Brand President from Lululemon, a seasoned leader credited with launching Lululemon’s footwear line. This leadership shift may also drive new Vans product launches as early as 2026, setting up a promising product pipeline.
The success of the KNU Skool line, now Vans’ #2 product, reflects the positive results of this realignment. Retailer Foot Locker has also highlighted strong sales momentum in the KNU Skool franchise. Beyond brand revitalization, Darrell is expected to explore additional divestitures beyond Supreme, aiming to achieve a healthier debt-to-equity balance.
If Darrell presents favorable guidance at Investor Day, VFC’s stock could see a substantial rally, potentially rising by 30%. The stock has been underweighted due to past financial struggles, such as high debt-to-EBITDA ratios and declining margins. Analysts may underestimate the strategic improvements underway, but this could shift dramatically with the anticipated guidance. With an implied 12% move, akin to high-volatility stocks like Coinbase, VFC’s upcoming announcements could drive a significant rerating. The alignment of these catalysts has led to a target price of $30 by year-end. Although there are inherent risks, the confluence of these positive developments positions VFC for potential upside.
The bullish thesis for Vans centers on improved inventory efficiency, strategic product realignment, the success of the KNU Skool line, the 2025 return of the Vans Warped Tour, and fresh leadership from Lululemon. Expected guidance from CEO Bracken Darrell at Investor Day may signal a turnaround, renewing investor optimism.
V.F. Corporation (VFC) is also not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held VFC at the end of the second quarter which was 33 in the previous quarter. While we acknowledge the risk and potential of VFC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than VFC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.