VFC - Embedded Expectations Analysis - 2021 02 17
V.F. Corporation (VFC:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 31.3x Uniform P/E, implying bullish expectations for the firm. However, management may have concerns about inventory build-up, their strategic investments, and supply chain headwindsSpecifically, management may lack confidence in their ability to sustain sequential growth for Timberland, reduce inventory build-up through promotional activities and controlled purchases, and make appropriate investments to improve brand equity and gross margins. Furthermore, they may be exaggerating the potential of the My First Eco Kicks Madbury campaign and their Project Enable initiative. They may also lack confidence in their ability to exit this year in a healthy financial position and execute their transformation agenda while managing costs. Finally, management may have concerns about the concentration of Vans stores in the U.S. and the impact of supply chain headwinds
VF is an apparel and footwear company. The company designs, produces, procures, markets and distributes a variety of lifestyle products, including outerwear, footwear, occupational and performance apparel, jeanswear, backpacks and luggage for consumers of all ages. Products are marketed primarily under the company-owned brand names. The company's segment comprised of: Outdoor, which includes performance-based and outdoor apparel, footwear and equipment; Active, which includes active apparel, footwear and accessories; Work, which consists of work and work-inspired lifestyle apparel and footwear and occupational apparel; and Jeans, which markets denim and related casual apparel products.
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