From Nasdaq:

VF Corp’s stock (NYSE: VFC), an apparel and footwear manufacturer, is currently trading at $19 per share, nearly 78% lower than its pre-inflation shock high of $86. The company’s recently reported a narrower profit in FQ2 2024, with adjusted earnings per share at 63 cents down from 73 cents a year ago, and it withdrew its full-year outlook due to weak sales in the U.S. The company’s top line fell about 2% year-over-year (y-o-y) to $3.03 billion, and it reported a 21% y-o-y decline in Vans sales. Additionally, VFC recently suffered a cybersecurity breach which will significantly impact its operations in coming weeks.

VFC stock has declined 75% from levels of $80 in early January 2021 to its current state. The stock has consistently underperformed the S&P 500 over the last three years. The Trefis High Quality (HQ) Portfolio, a group of 30 stocks, has outperformed the S&P 500 each year over the same period. The future performance of VFC stock remains uncertain in the short-term.

The Valuation estimate for VFC is $20 per share, almost 5% higher than the current market price. VFC’s stock’s performance during the current market conditions has led to a comparison with its performance during the 2008 recession.

VFC revenues grew 12% from around $10.5 billion in FY 2020 to about $11.8 billion in FY 2022, due to the strong performance of the North Face brand. However, sales fell slightly to 11.6 billion in FY 2023 due to softer industry trends.

With the Fed’s efforts to tame runaway inflation rates helping market sentiment, we believe VFC stock has the potential for strong gains once fears of a potential recession are allayed.



Read more: Down 78% From Its Pre-Inflation Shock High, With The S&P Up 13%, What Is Next For VF Corp Stock?