V.F. Corporation VFC and PVH Corporation PVH both dominate the global apparel landscape, each commanding a portfolio of powerful brands and decades of retail expertise. PVH, known for brands like Calvin Klein and Tommy Hilfiger, thrives in the premium lifestyle and fashion-forward space, while V.F. Corp, the parent of Vans, The North Face, and Timberland, excels in outdoor, active and workwear segments. Despite their differences in brand positioning and consumer focus, both companies are industry powerhouses, shaping fashion trends, retail strategies, and sustainability efforts worldwide. As global consumer demand evolves, these companies are actively transforming through digital innovation, supply chain agility and direct-to-consumer expansion.
These companies operate within the broader Zacks Textile-Apparel industry, a multi-trillion-dollar global segment that is both fast-paced and highly competitive. Both VFC and PVH are navigating a complex retail landscape marked by shifting consumer behavior, inflationary pressure and heightened demand for sustainability. With digital channels playing a larger role and global supply chains still stabilizing, both companies are adapting their strategies to drive growth and protect margins in an increasingly competitive environment.
This face-off goes beyond classic fashion rivalries. It is a battle of business models, brand strength, strategic agility, and long-term value creation. From financial performance and global reach to digital transformation, supply chain resilience, and consumer engagement, we will break down how V.F. Corp. and PVH Corp. stack up in a rapidly evolving apparel industry.
Let’s dive into their numbers and strategies to see which apparel giant is better positioned to outperform in 2025 and beyond.
The Case for VFC Stock
V.F. Corp. is gaining meaningful traction through its Reinvent transformation program, which is designed to drive long-term value by building stronger brands and enhancing operational execution. The program focuses on four critical priorities: reducing costs, strengthening the balance sheet, fixing the Americas region, and turning around Vans, its most challenged but high-potential brand. These efforts are already showing signs of progress, with disciplined cost control and strategic investments beginning to stabilize key business units.
The Reinvent strategy is delivering measurable cost benefits. VFC has achieved $300 million in gross cost savings so far, with plans to unlock $500-$600 million in operating income expansion by fiscal 2028.
In alignment with this transformation, VFC has laid out ambitious yet achievable medium-term financial goals that signal confidence in its turnaround strategy. The company is targeting an adjusted operating margin of at least 10%, an adjusted gross margin of 55% or higher, and a more efficient SG&A ratio of 45% or lower. These targets reflect a focus on rebuilding profitability and margin strength by driving productivity and improving channel mix, particularly through direct-to-consumer and international expansion. Furthermore, V.F. Corp aims to bring net leverage down to 2.5x or below, demonstrating a firm commitment to financial discipline and capital efficiency.
Additionally, VFC has reduced net debt by nearly $2 billion, reinforcing its commitment to financial health and giving it greater flexibility for reinvestment and shareholder returns. The free cash flow guidance has also been raised to $440 million for fiscal 2025, a testament to improved operational discipline and inventory management.
Despite delivering a solid third-quarter fiscal 2025 performance, V.F. Corp has adopted a more cautious outlook for the fourth quarter, reflecting several transitional headwinds. The company acknowledged that certain temporary factors that benefited fiscal third-quarter results, such as timing shifts and channel-specific momentum, are not expected to carry over. As a result, VFC has revised its guidance and no longer anticipates sequential revenue growth. Instead, fourth-quarter fiscal 2025 revenues are projected to decline 4-6% year over year on a reported basis and 2-4% on a constant-currency basis.
The Case for PVH Stock
PVH Corp. stands as a formidable force in the global apparel industry, commanding a significant share through its flagship brands Calvin Klein and Tommy Hilfiger, which together account for the majority of the company’s revenues. The company’s strategic focus lies in brand elevation, direct-to-consumer (DTC) growth, and operational streamlining. PVH has doubled down on its PVH+ Plan, a multi-year transformation strategy aimed at unlocking long-term value through digital acceleration, supply chain agility, and enhanced consumer engagement.
PVH Corp. has taken a proactive stance in navigating today’s challenging macroeconomic environment through cost discipline and operational efficiency initiatives, which are beginning to bear fruit. A key pillar of its strategy is geographic diversification, with a sharp focus on unlocking long-term growth in Asia, particularly China, a high-potential market with growing demand for premium and lifestyle brands. In North America, where the company already maintains a strong presence, PVH is confident about sustaining a double-digit EBIT margin in fiscal 2025, driven by the solid execution of its PVH+ Plan, which includes improving omnichannel capabilities, enhancing brand relevance and streamlining operations.
In Europe, PVH is focused on reigniting growth through consistent improvements across its core pillars: product innovation, elevated marketing and marketplace execution. The company aims to enhance performance across both its D2C and wholesale channels in the region, leveraging its strong brand recognition and strategic retail partnerships. Europe has historically been a key contributor to PVH’s performance, and management is optimistic about turning the region back to growth through this comprehensive, market-specific approach.
Moreover, PVH is leading in digital innovation through AI-powered personalization, mobile-first commerce strategies, and strategic partnerships with platforms like Amazon.com (AMZN), Zalando, and Tmall. With a powerful mix of brand equity, global scale, and forward-looking execution, PVH presents a compelling investment opportunity for those seeking exposure to a top-tier apparel company with momentum and vision.
How Does the Zacks Consensus Estimate Compare for VFC & PVH?
The Zacks Consensus Estimate for PVH's fiscal 2025 sales and EPS implies year-over-year growth of 0.8% and 7.2%, respectively. The EPS estimate has remained stable in the past seven days.
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The Zacks Consensus Estimate for VFC’s fiscal 2025 sales suggests a year-over-year decline of 1.4%, whereas that for EPS indicates growth of 21.6%. The EPS estimate has moved down by 10.9% in the past seven days.
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Stock Price Performance & Valuation of VFC & PVH
PVH Corp. currently trades at a forward 12-month P/E ratio of 6.26X, which is below the Zacks Textile – Apparel industry average of 12.40X. In contrast, VFC trades at a higher multiple of 12.92, making it expensively valued relative to both PVH and the industry average.
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For value-focused investors, PVH’s lower P/E ratio, coupled with its solid execution of the PVH+ Plan and consistent profitability, presents a compelling entry point. On the other hand, VFC’s premium valuation reflects investor optimism tied to its Reinvent transformation program, though it also brings greater execution risk given the ongoing operational challenges.
In the past month, PVH Corp. stock has gained 15.3%, outperforming VFC and the broader industry’s growth of 3.7% and 13.9%, respectively. This outperformance, combined with a significantly lower valuation and clear strategic execution through the PVH+ Plan, positions PVH as a more attractive investment proposition.
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Conclusion
In the battle between PVH Corp. and V.F. Corp., both companies are pursuing transformative strategies to navigate a rapidly evolving global apparel landscape. However, PVH stands out as the stronger contender in 2025, backed by its disciplined execution of the PVH+ Plan, compelling valuation and robust brand momentum across key international markets.
While VFC’s Reinvent program shows early signs of operational improvement and future margin expansion, the company remains in a transitional phase, with near-term headwinds and elevated execution risk weighing on performance. Despite its long-term goals and progress on cost savings and debt reduction, investors remain cautious, as reflected in recent downward EPS estimate revisions.
While V.F. Corp is a legacy player with a broad brand portfolio and global scale, it now finds itself in the shadow of PVH’s accelerating momentum, sharper execution, and focused strategy that is redefining modern apparel leadership. Therefore, for investors seeking stability, consistent brand-driven growth, and long-term value creation, PVH stands out as the stronger, more reliable choice. PVH currently carries a Zacks Rank #2 (Buy), whereas VFC has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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