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24Hey. $VFC (+1,59 %) not really often, I wanted to ask what people here think about it.
I bought in at around €10 and plan to hold it for the long term, as I'm convinced that VF can still make a turnaround in the long term.
Now it is going up relatively well this month with about 25% up. What is your opinion on VF? Do some people here hold it themselves?
🔹 Revenue: $1.76B (Est. $1.70B) 🟢; FLAT YoY or DOWN -2% Constant Currency
🔹 Adj. EPS: ($0.24) (Est. ($0.33)) 🟢
🔹 Adj. Operating Loss: ($56M) vs. guide of ($125M) to ($110M); 🟢
🔹 Adj. Operating Margin: -3.2%; UP +270 bps YoY
🔹 Adj. Gross Margin: UP +290 bps YoY
🔹 SG&A: FLAT YoY (Adjusted)
🔹 Net Debt: DOWN -$1.4B or -20% YoY
Q1 Segments (YoY):
🔹 The North Face®: STRONG growth
🔹 Timberland®: POSITIVE momentum
🔹 Vans®: DOWN -14% YoY (channel rationalization)
🔹 Altra®: STRONG growth
🔹 Excluding Vans®, Total Revenue: UP +6% YoY
Guidance:
Q2 FY26
🔹 Revenue: DOWN -4% to -2% Constant Currency
🔹 Adj. Operating Income: $260M–$290M
FY26 Outlook
🔹 Free Cash Flow: UP YoY (includes tariff impact)
🔹 Adj. Operating Income: UP YoY
🔹 Operating Cash Flow: UP YoY
CEO Commentary:
🔸 “We performed ahead of expectations, improving our topline trend and delivering a stronger bottom line.” – Bracken Darrell, CEO
🔸 “We’re reducing debt, lowering costs, and resetting VF for growth.”
🔸 “Soon we will move to growth—that’s what the entire organization is now focused on.”
Sales of selected competitors of Nike $NKE (+1,64 %) :
Nike(USA): $49.0 billion, -8% in the last quarter compared to the previous year, $NKE (+1,64 %)
Adidas*(Germany): $24.6 billion, +7%, $ADS (+0,99 %)
Lululemon**(USA): $10.2 billion, +9%, $LULU (+0,99 %)
VF Corporation**(USA): $9.9 billion, +2%, $VFC (+1,59 %)
Anta Sports*(China): $9.7 billion, +14%, $2020 (-1,71 %)
Puma*(Germany): $9.3 billion, +0%, $PUM (-1,53 %)
Skechers**(USA): $8.7 billion, +13%, $SKX (+0 %)
New Balance*(USA): $7.8 bn, unlisted
Under Armour*(USA): $5.4 billion, -6%, $UAA (+0,83 %)
Deckers Brands**(USA): $4.6 billion, +17%, $DECK (+1,64 %)
ASICS*(Japan): $4.1 billion , +16%, $7936 (+0,49 %)
Li Ning*(China): $3.9 bn, +2%, $2331 (-2,35 %)
On Holding**(Switzerland): $2.5 billion, +32%, $ONON (+2,16 %)
Despite all its problems, Nike is still twice as big as Adidas and somewhat as big as its four main competitors (Adidas, Anta Sports, Puma, New Balance) combined. together.
The Nike share is currently in a 60% drawdown (the worst in 25 years) and is roughly at the level of the COVID-19 low in March 2020.
Attractive risk-reward ratio?
Is Nike a buy, hold or sell for you?
*Main competitor
**Competitor in certain segments
🔹 EPS: $0.43 (Est. $0.33) 🟢
🔹 Revenue: $2.8B (Est. $2.75B) 🟢; UP +2% YoY
🔹 Operating Income: $226M
🔹 Adj. Operating Income: $324M (Est. $202.87M) 🟢
🔹 Operating Margin: 8.0%, UP +1,130 basis points YoY
🔹 Adj. Operating Margin: 11.4%, UP +360 basis points YoY
🔹 Net Debt Reduction: $1.9B YoY
🔹 Net Inventories: DOWN -14% YoY
Q4'25 Guidance:
🔹 Revenue Decline: (4)% to (6)% YoY
🔹 Adj. Operating Loss: $(30)M to $0M
🔸 Gross margins expected to improve YoY
FY'25 Guidance:
🔹 Free Cash Flow: $440M (Raised from prior $425M) 🟢
🔸 Increase reflects higher-than-expected proceeds from non-core asset sales & improved fundamentals
Segment Performance & Brand Highlights:
🔹 The North Face & Timberland: Strong global performance
🔹 Vans Revenue: DOWN -9% YoY, improved from Q2 (-11% YoY)
🔹 Americas Revenue: UP +1% YoY
Strategic & Cost-Saving Initiatives:
🔹 Reinvent Cost Savings: $55M savings in Q3; targeting $300M total
🔹 Next Phase of Cost Reductions: Targeting an additional $250M-$300M in SG&A savings
🔹 $1B Debt Repayment: Supreme sale proceeds used for loan payoff; $750M debt maturity to be retired by FY-end
CEO Bracken Darrell’s Commentary:
🔸 "We made strong progress in Q3'25, improving profitability and strengthening the balance sheet. The pace of VF’s transformation remains on track, and we look forward to sharing further strategic brand plans at our March Investor Day."
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Nuscale $SMR
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VF Corp $VFC (+1,59 %)
WellTower $WELL (+0,44 %)
Is there a turnaround from Vans, what are you wearing?
Hopefully not plastic shoes from Crocs.
Vans' parent company, VF Corp, has returned to profit after two consecutive quarterly losses, beating sales estimates for the second quarter. The company benefited from a sequential improvement in direct sales and a streamlining of inventories, causing the company's shares to rise by around 16% in after-hours trading.
CEO Bracken Darrell's turnaround strategy, which includes the appointment of executives such as Sun Choe as Global Brand President for Vans, and the sale of the Supreme streetwear brand have led to stronger growth in China, followed by the Americas and EMEA.
VF Corp's quarterly sales in China increased 9% on a currency-adjusted basis, compared to a 4% increase in the same period last year.
The company's revenue fell 6% to $2.76 billion from the same period last year, beating analysts' estimates of $2.71 billion, according to data compiled by LSEG.
The company's margins continued to improve thanks to inventory reduction initiatives implemented in recent quarters - such as increased promotions and discounts - even as the company's reinvestment increased.
VF Corp's quarterly gross margin increased by 120 basis points to 52.2%.
On an adjusted basis, VF Corp reported earnings of 60 cents per share, compared to analyst estimates of 37 cents per share.
Competitors Deckers Outdoor, Gap and Abercrombie & Fitch also saw an increase in demand for trendier clothing and footwear.
Analysts at Guggenheim Securities had indicated earlier this month that VF Corp could see sequential improvement in wholesale during FY25 as retailers are expected to place more orders for The North Face and Vans during the spring season.
Dividend cuts are the worst. 👎
Unfortunately, I've experienced a couple of them over these last few years, though thankfully none as bad as what V.F. Corporation ($VFC (+1,59 %)) has been shelling out this year (two cuts in 2023 - the first by 41% and then, more recently, by 70%).
If you plan on investing for any extended amount of time, you're likely to experience at least one of them yourself. Sometimes they come out of nowhere, and there's just nothing you can do, but one way that you can take extra precautions against dividend cuts is to pay extra attention to the Payout Ratio - a good litmus test for a company's ability to sustain and even grow its dividend payments.
The Payout Ratio represents the percentage of a company's earnings that it chooses to distribute as dividends. The lower this ratio, the more reassuring it is for us as investors.
A low Payout Ratio indicates that a company is not overextending itself to pay dividends, and implies that it'll have an easier time sustaining and even growing those payouts over time.
A prime example of this is Snap-On ($SNA) (+0,45 %), one of the 10 stocks in "My Perfect Portfolio." Snap-On's Payout Ratio is only 35%, meaning they retain the majority of their earnings to reinvest in their business or save for a rainy day.
Such a conservative approach in the dividend department gives us some insight into the company's financial prudence, and sets the stage for the possibility of future dividend growth (which SNA has done a great job with so far with their 14% Dividend Growth Rate).
However, not all companies are like Snap-On. Take Leggett and Platt ($LEG (+0,25 %)) for instance, which is sporting a Payout Ratio near 120% and is currently paying out more in dividends than it's earning.
Yes, $LEG (+0,25 %) has a 7.8% dividend yield, and that might have you seeing dollar signs, but this scenario is far from sustainable. We'll see what happens, but this may be the makings of a certified "Yield Trap".
A yield trap may lure you in with its temptingly high dividend yield, but it's a short-lived attraction. Continuing to pay out more than you earn is a path that ultimately leads to dividend cuts, and it's crucial to see beyond the yield and focus on the sustainability of those payments.
With that said, I want to hear from you: Do you know of any yield traps that we should stay away from? Let me know in the comments below! 👇
These are the current Downgrades🟥 on this Monday, the September 18, 2023.
Hello together,
I would be interested in your opinion about the $VFC (+1,59 %) interested. Currently would be a good price to strike but am unsure because of the debt and interest.
I know you also do not have a magic crystal ball but your opinion would interest me very much^^.
Mfg
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