Cramer's Love Affair With VF Corp (VFC) Continues...
On Friday's Mad Money, Jim Cramer's love affair with his favorite clothing manufacturer, VF Corp (NYSE: VFC) continued, which he also owns for his ActionAlertsPlus.com fund. He has pitched VF Corp several times during the past several months and thinks VF Corp will benefit in this economy.
Cramer mentioned how department stores are drastically discounting items and this will greatly benefit clothing manufacturers like VF Corp, who manufacture popular brands, such as Nautica, Wrangler, Vans, Lee Jeans, 7 For All Mankind and North Face. Cramer said, "People are killing each other for these discounts and they only hurt the retailer, not the actual apparel maker." Cramer thinks VF Corp is the best way to play retail right now.
He said VFC has done well with its acquisitions. It bought North earlier this decade when it did $250 million in annual sales, today North Face does $1 billion sales.
VF Corp sells over 20% of its products oversees, and Cramer said that exposure would offset any potential problems from US customer stores going out of business. Cramer likes the 4.3% dividend yield and with VF Corp trading at just 8 times earnings, he thinks this is another good time time to pick up shares of VF Corp.
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Cramer did note to pick up shares of VF Corp in small increments, in order to dollar cost average as shares may continue to fall in the near-term. Jim is currently up 10% on VF Corp in his ActionAlertsPlus.com fund.
V.F.Corporation (VF) is engaged in branded lifestyle apparel and related products.
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