Re: V.F. Corp (VFC)
More buys today in VFC - the low PE 10x & 6% div payer.
Here is what the AI thinks:
VF Corporation's key value proposition is centered around the following:- Offering a portfolio of well-known consumer brands across various apparel and footwear categories, including The North Face, Vans, Timberland, Dickies, and Supreme. 4 5
- Driving growth through a multi-pronged strategy that includes:
- Innovating within its existing brand portfolio to capitalize on consumer trends 5
- Building and managing brands across different growth horizons, including through M&A 5
- Leveraging strategic platforms to enable faster scaling and efficiency, such as consumer data analytics, DTC-centric supply chain, and digital consumer experiences 5
- Committing to consistent, sustainable, and profitable growth, with a target of mid- to high-single digit revenue CAGR and reaching 15% operating margin by fiscal year 2027. 5
Regarding VF Corporation's customers, they do not disclose their largest customers, but they note that they rely on a small number of large customers. 4VF Corporation has been actively investing in and growing its direct-to-consumer (DTC) business, which comprised 21% of total revenues in 2012 and is expected to grow to 25% by 2017. 4 Key elements of their DTC strategy include new store openings (especially internationally), accelerated ecommerce growth, and continuous comparable store increases, targeting a 14% CAGR in DTC revenues to reach $4.4 billion by 2017. 4
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This from GS today:
VFC Shares dropped 3.5% after Goldman Sachs initiated coverage of the stock with a sell rating, saying it sees a “tough macro and ongoing competitive pressure” for the lingerie company in the near term. Longer term, the firm is constructive on the company’s loyalty initiatives and renewed merchandise focus. |
