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We came across a bullish thesis on V.F. Corporation (VFC) on Value Investing Subreddit Page by Fun-Imagination-2488. In this article, we will summarize the bulls’ thesis on VFC. V.F. Corporation (VFC)'s share was trading at $11.68 as of April 3rd. VFC’s trailing and forward P/E were 111.90 and 11.51 respectively according to Yahoo Finance.
A hiker in a forest with a backpack of outdoor equipment highlighting the company's lifestyle products.
VF Corporation (VFC) presents one of the most compelling opportunities in the apparel market today, with a market capitalization of just $4.57 billion despite its portfolio of iconic brands like The North Face, Vans, Timberland, and Dickies. Under the leadership of Bracken Darrell, a turnaround specialist known for revitalizing Old Spice and Logitech, VF is undergoing a transformation that could unlock massive shareholder value. Since his appointment as CEO in July 2023, Darrell has focused on streamlining operations, enhancing brand equity, and improving financial discipline. His strategic leadership is complemented by the hiring of Sun Choe, the former Chief Product Officer at Lululemon, as Global Brand President of Vans, a move that signals a commitment to reinvigorating VF’s most struggling brand.
VF’s ability to weather economic cycles has been a defining strength, with a diversified brand portfolio that ensures adaptability. Financially, the company has been making significant strides. Since Q1 2024, VF has posted consistent improvements in revenue, EPS, and gross margins. In Q2 2025, revenue hit $2.76 billion, exceeding analyst expectations, while adjusted EPS reached $0.60. Gross margins expanded by 120 basis points to 52.2%, driven by improved inventory management and a focus on full-price sales. Furthermore, VF has aggressively reduced its debt, cutting total liabilities from $11.3 billion to $8.8 billion, positioning itself for long-term financial strength.
Strategic initiatives further support the investment case. VF has divested non-core assets like its Occupational Workwear business and Supreme to refocus on its core brands. Meanwhile, its emphasis on direct-to-consumer channels aligns with modern retail trends, enhancing customer engagement and profitability. While competition from Nike and macroeconomic sensitivity remain risks, Darrell’s execution track record instills confidence. At current prices, investors are paying just $4.5 billion for a business that historically generated over $10 billion in revenue. The potential upside is substantial, with the stock poised to compound at 30-40% annually over the next five years, making it a rare deep-value opportunity in the consumer sector.