V.F. Corporation VFC has demonstrated strong upward momentum, trading above its 50 and 200-day simple moving averages (SMAs). SMA is a key indicator of price stability and long-term bullish trends.

VFC ended yesterday’s trading session at $23.08, above its 50 and 200-day SMAs of $21.03 and $16.84, respectively, highlighting a continued uptrend. This technical strength, combined with consistent momentum, reflects positive market sentiment and investor confidence in V.F. Corp’s financial stability and growth potential.

VFC Trades Above 50 & 200-Day Moving Averages

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Shares of this leading clothing conglomerate have gained 20% compared with the Zacks Textile - Apparel industry’s 12.1% growth in the past three months. The company’s Reinvent transformation program, which focuses on brand-building and improved operating performance, has helped it to outperform the broader Consumer Discretionary sector and the S&P 500 index’s growth of 5.3% and 1.2%, respectively, in the same period.

VFC’s Three-Month Stock Performance

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V.F. Corp.’s Reinvest Initiative Bodes Well

V.F. Corp.’s Reinvent transformation program mainly targets four objectives, including improving North America’s performance, Vans’ turnaround, reducing costs and strengthening the balance sheet. The company continues to advance transformation, reducing costs, strengthening the balance sheet, fixing issues in the Americas segment and turning around Vans.

V.F. Corp. is on track to significantly lower its cost base, achieving an additional $65 million in cost savings in the third quarter of fiscal 2025. This brings cumulative savings to approximately $200 million since the program's inception. The company has fully executed the actions required to reach $300 million in cost savings by the end of the fiscal year, demonstrating strong progress and financial discipline.

VFC continues to reinvest some savings into the business, mainly in key areas like product and brand building. It also concentrates on strengthening its balance sheet. It has concluded the Supreme divestiture. Concerning the Reinvent efforts, the company will fund an additional $50 million of cost savings.

More Insights Into VFC’s Operation

V.F. Corp. is making meaningful progress in revitalizing its U.S. business and addressing challenges to drive improved performance. The company's Americas segment exhibited sequential improvement in the latest quarter, reflecting early signs of recovery. The company’s brand-elevation efforts are gaining traction, particularly with the Vans turnaround. Through its OTW premium label and influencer programs, Vans is leveraging product collaborations and targeting key influencers and early adopters in urban markets.

A key driver of VFC’s growth is its improving operational efficiency. The company has optimized its cost structures, resulting in a 120 basis points (bps) expansion in gross profit margin for second-quarter fiscal 2025. For third-quarter fiscal 2025, the gross margin is likely to be up year over year, gaining from lower product costs and fewer reserves. The company anticipates sequential improvement in its overall business and revenue trends during the fourth quarter, with gross margin and SG&A growth rates mirroring those of the third quarter.

The company’s strategic approach to selling the Supreme brand marks a significant shift and aims to refocus on its core business and improve operational efficiency. The company had acknowledged that Supreme lacked synergy with its broader portfolio, leading to its divestiture. This move helps V.F. Corp. streamline its operations and enhance financial flexibility by reducing leverage.

Final Thoughts on VFC Stock

Investors may consider the V.F. Corp stock due to its strong momentum, supported by positive market sentiment and consistent performance above key moving averages. The company’s focus on the Reinvent transformation program bodes well while operational improvements have increased profitability. The company's efforts to strengthen brands like Vans and The North Face, reduce costs and enhance its balance sheet are promising. With a positive growth outlook, V.F. Corp presents an attractive opportunity for investors seeking long-term growth. The company sports a Zacks Rank #1 (Strong Buy) at present.

Three Picks You Can’t Miss

Some other top-ranked stocks in the Consumer Discretionary space are Wolverine World Wide WWW, Ralph Lauren Corporation RL and Steven Madden, Ltd. SHOO.

Wolverine World Wide designs, manufactures and distributes a wide variety of casual and active apparel and footwear. The company sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for WWW’s current financial-year sales indicates a decline of almost 22% from the year-ago figure. The consensus mark for EPS indicates significant growth to 90 cents from 5 cents reported in the prior year. WWW has a trailing four-quarter earnings surprise of 17.03%, on average.

Ralph Lauren, which designs, markets and distributes lifestyle products, carries a Zacks Rank #2 (Buy) at present. RL has a trailing four-quarter earnings surprise of 9.1%, on average.

The Zacks Consensus Estimate for Ralph Lauren’s current fiscal-year sales and earnings indicates growth of 3.6% and 13.9%, respectively, from the prior-year reported levels.

Steven Madden designs, sources, markets and sells fashion-forward name-brand and private-label footwear. It currently has a Zacks Rank #2.

The Zacks Consensus Estimate for Steven Madden’s 2024 earnings and sales indicates growth of 8.6% and 13.6%, respectively, from the year-ago actuals. SHOO has a trailing four-quarter average earnings surprise of 9.8%.

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V.F. Corporation (VFC) : Free Stock Analysis Report

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