VF Corp Stock Hits 52-Week High at $23.68 Amid Market Rally

Published 01/15/2025, 09:34 AM
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VF Corporation (NYSE:VFC), a global leader in branded lifestyle apparel, footwear, and accessories, has reached a new 52-week high of $23.68, marking a significant milestone for the company's stock performance. This peak reflects a robust recovery and investor confidence, with the stock demonstrating remarkable momentum through a 74.77% surge over the past six months. According to InvestingPro data, VFC has maintained dividend payments for an impressive 54 consecutive years, though current analysis suggests the stock may be trading above its Fair Value. The climb to a 52-week high represents a turnaround for VF Corp, whose portfolio includes popular brands such as The North Face, Vans, and Timberland, as the company navigates through the dynamic retail landscape and responds to shifting consumer trends. While the company posted negative earnings in the last twelve months, InvestingPro analysis reveals analysts expect a return to profitability this year. Investors are closely monitoring VF Corp's strategic initiatives and growth prospects as the stock continues to gain momentum in the market. For deeper insights into VFC's valuation and growth potential, access the comprehensive Pro Research Report, available exclusively on InvestingPro, along with 8 additional key ProTips for informed decision-making.

In other recent news, VF Corp has been the subject of several analyst reports. Guggenheim maintained its Buy rating on VF Corp and increased the price target to $27, citing expected top-line improvement, better operating margins, and ongoing balance sheet deleveraging. TD Cowen also raised VF Corp's price target to $24, pointing to the company's successful debt reduction and comprehensive transformation strategy. These recent developments highlight the apparel company's efforts to strengthen its financial position and prepare for future growth.

VF Corp reported a year-over-year revenue decline of 6% for Q2 of fiscal year 2025, an improvement from the 10% decline in Q1. The company's gross margin increased to 52.2%, and operating income stood at $315 million. VF Corp's diluted earnings per share were noted at $0.60, slightly down from the previous fiscal year. The company has projected Q3 revenue between $2.7 billion and $2.75 billion, with a decline of 1% to 3% year-over-year.

The company has also outlined medium-term financial goals, including an adjusted operating margin of at least 10%, an adjusted gross margin of at least 55%, and an adjusted SG&A as a percentage of revenue of 45% or lower. These targets are part of VF Corp's strategic plan to enhance profitability and shareholder value.

In a strategic move, VF Corp divested Supreme, generating net proceeds of about $1.5 billion and repaid $1 billion of term loans. The corporation also achieved $65 million in cost savings in Q2, amounting to $300 million for the fiscal year. These actions demonstrate VF Corp's ongoing efforts to streamline its operations and improve its financial health.

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