VFC – Comments and Ratings

NEW YORK (TheStreet) — While retail has been an ugly sector to invest in as of late, Marie Driscoll, retail analyst at Driscoll Advisors, tells TheStreet’s Laurie Kulikowski where some bright spots might be found. Same-store sales for August…

V F Corp (VFC) Showing Resistance Near $199.36 With 1.77% Dividend Yield
Market Intelligence Center Jul 26 Comment

V.F. Corp (NYSE: VFC) closed Thursday’s trading session at $197.79. In the past year, the stock has hit a 52-week low of $142.79 and 52-week high of $200.55. V F Corp (VFC) stock has been showing support around $195.14 and resistance in the…

UPDATE: Citigroup Raises PT on VF Corp. on Near-Term Pressures, Potential Upside
Benzinga Jul 22 Comment

In a report published Monday, Citigroup analyst Kate McShane reiterated a Buy rating on VF Corp. (NYSE: VFC), and raised the price target from $210.00 to $224.00. In the report, Citigroup noted, “We think VFC shares could trade in a tight…

V F Corp (VFC) Could Fall Through $191.64 Support Level
Market Intelligence Center Jul 22 Comment

V.F. Corp (NYSE: VFC) closed Friday’s trading session at $196.94. In the past year, the stock has hit a 52-week low of $142.79 and 52-week high of $200.55. V F Corp (VFC) stock has been showing support around $191.64 and resistance in the $202.18…

VF Corp profit lifted by lower cotton costs, Vans sales gains
Reuters Jul 19 Comment

VF Corp, owner of the brands like Wrangler jeans and The North Face outdoor clothing, reported higher quarterly adjusted earnings, helped by lower cotton costs and rising sales of…

VF Corp. (VFC) Declares $0.87 Quarterly Dividend; 1.7% Yield
StreetInsider.com Jul 19 Comment

VF Corp. (VFC) Tops Q2 EPS by 10c; Boosts FY13 EPS Outlook
StreetInsider.com Jul 19 Comment

Forbes Earnings Preview: V.F. Corporation (VFC)
Forbes Jul 17 Comment

VF Corporation reports its second quarter earnings on Friday, July 19, 2013.

V F Corp (VFC) Could Break Through $197.93 Resistance Level
Market Intelligence Center Jul 3 Comment

V.F. Corp (NYSE: VFC) closed Tuesday’s trading session at $193.58. In the past year, the stock has hit a 52-week low of $129.53 and 52-week high of $196.99. V F Corp (VFC) stock has been showing support around $189.99 and resistance in the $197.93…

Timberland Appoints New President
Benzinga Jun 27 Comment

Timberland announces the promotion of Timo Schmidt-Eisenhart following the retirement of Richard O’Rourke as Senior Vice President of International. Timo Schmidt-Eisenhart, newly appointed President, Timberland (Photo: Business Wire) Timo…

Suggest other news sources for this topic

RELATED WIKI ARTICLES

Polo Ralph Lauren (RL)
Columbia Sportswear Company (COLM)
True Religion Apparel (TRLG)
Phillips-Van Heusen (PVH)
Limited Brands (LTD)

more ▼

WIKI ANALYSIS

V.F. Corporation (NYSE: VFC) is a leading clothing manufacturer. This company owns a wide range of major brands in denim, sportswear, and outdoor apparel. Some of the other known brands include Lee, The North Face and Vans. V.F. primarily sells clothes through department stores and other national mass-market chains; its five largest customers, including Wal-Mart, Gap, Limited, Target, and Sears. These customers consistently make up over 25% of the company’s sales.

In recent years, the company has shifted its business strategy from maintaining its mass-market holdings to acquiring “lifestyle brands”—clothing that resonate with consumers and generally come with higher margins. The company has focused on using its supply chain expertise to improve these brands’ business operations, while leaving the creative decisions to the brands themselves. To meet this goal, V.F. has spent over $4billion in the past several years acquiring more upscale brands like Nautica, John Varvatos, lucy Activewear, Seven For All Mankind and most recently Timberland and Smart Wool.

Company Overview

V.F. Corporation designs and manufactures apparel, sport wears, motor gear products, footwear products etc. primarily in United States and other major cities around the world. VFC advertises products manufactured by other corporations globally as well. VFC strongly rely on outsourcing to independent contractors around the world. Most of its products are carried by airplanes, terrain vehicles, mini-on-road vehicles, footwear, outdoor gears, skateboard-inspired and surf-inspired footwear, backpacks, luggage, handbags and other accessories markets and industries.

Contents
1 Company Overview 1.1 Business financials
1.2 Breakdown of Holdings

2 Trends and Forces 2.1 Volatility of Fashion Trends
2.2 U.S. Economic Conditions
2.3 Dependency on Department Stores

3 Competition
4 Initial Offer
5 Notes

Valerie Fotso is the founder and owner of this corporation and was founded in 1998.

Some of its products can also be found in specialty stores, department stores, national chain stores, and mass merchants outlets in different parts of the world. As a means of increasing market share, the company have also sort to differentiate itself from order competitors by demanding exclusive contracts on store-specific items. These products are distributed by BA, PII, GR and other outdoor sporting goods stores. JBVEF has continuously play an important role by providing Poems and short stories which have developed into mainstream movies played on some of the airlines carriers and also provided recipes and other interesting topics to billions media surfers.

Business financials

In 2009, VFC earned a total $7.2 billion in total revenues. This was a decline from its 2008 total revenues of $7.6 billion. This in turn had an adverse impact on VFC’s net income. Between 2008 and 2009, VFC’s net income declined from a net profit of $603 million in 2008 to $458 million in 2009

Breakdown of Holdings

Historically, V.F.’s revenue has largely come from its holdings in mass market jeanswear (e.g. Lee, Wrangler, and Rustler jeanswear), as well as intimate apparel. But as the company seeks out brands with higher growth prospects, it sold its intimate apparel unit and acquired several luxury demin and sportswear lines. In addition to these higher-end brands, a significant portion of the revenue is derived from the company’s outdoor apparel holdings, which includes brands such as Reef, Vans, and the North Face.

Trends and Forces

Volatility of Fashion Trends

The world of luxury consumption is quite often a fickle one. Less well-established brands that were popular one season can lose much of their luster in the next one. As V.F. seeks to expand its presence in the higher end of the apparel market, it must contend with the potential for rapid change in consumer tastes. These fluctuations may lead to increased volatility in V.F.’s revenues in the years to come. However, if VFC is able to build a consistent and strong brand, it can attempt to overcome the volatility of the fashion trends.

U.S. Economic Conditions

Roughly three quarters of V.F.’s business is conducted within the United States, rendering it particularly susceptible to shifts in the U.S. economy. Recent trouble in the credit markets, coupled with high gasoline prices, have the potential to depress domestic consumer spending, thereby impacting V.F.’s bottom line. However, V.F.’s mass market jeanswear, which accounts for almost half of the company’s, serves as a significant hedge against decreases in consumer discretionary spending. Although V.F.’s brands attract a wide range of customers, most consumers are more likely to spend on low-cost wardrobe basics than designer apparel in an economic downturn. But as V.F. continues to expand its near luxury holdings, it will become more vulnerable to changes in the U.S. economy.

Dependency on Department Stores

Department stores in the United States have undergone significant changes in recent years. In response to declining margins, stores have implemented tighter inventory controls and have scaled back the quantities of merchandise that they purchase from wholesalers like V.F. As a means of increasing market share, companies have also sought to differentiate themselves from the competition by demanding exclusive contracts and store-specific private labels (e.g. Ralph Lauren’s “American Living” line for J.C. Penney).[1]

Competition

V.F. faces a broad range of competitors across its various holdings. Its Seven for All Mankind denim brand competes with labels like True Religion, Diesel, and Citizens for Humanity. It’s Nautica brand competes against Polo Ralph Lauren, Van Heusen, and IZOD. The company’s North Face brand competes with other outdoorswear brands like Timberland and Columbia Sportswear.

Initial Offer

1st Price

Company Exchange Ticker Industry Offer Proposed Price Range Shares (in Billions) IPO Price Open Price Director CFO Founder & Owner
VF Corporation (Valerie Fotso Corporation) NYSE VFC Internet Services / B2B / Social Network /Trademark / Registered / Clothing / Sport wear / etc  09/30/1998 $4.00 to $5.00 10 $4.20 $10.50 Valentine Njee Valerie Njee Fotso

Notes
1.↑ “Top fashion designers go down-market”, USA Today (published September 25, 2007)

Categories: Mature | Consumer products | Fashion | Apparel – Clothing

Leave a comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s