Barclays Reiterates Overweight Rating on VF Corp. (VFC)

Barclays analyst Adrienne Yih reiterated an Overweight rating and $19.00 price target on VF Corp. (NYSE: VFC)

The analyst comments: "We believe that the sale of Dickies sufficiently addresses the upcoming maturity of EUR500mn in long-term notes due March 2026. Management had previously indicated that reducing debt is a top capital allocation priority and that they plan to reduce debt primarily with free cash flow. The Dickies sale price enables VFC to bring net debt level down while being "accretive to our growth on a pro-forma basis" as well as providing additional cash funds. For FY25, Dickies net sales were $542mn (12mos ending 3/31/25). In addition, VFC previously reported a 'Work' segment that included only Dickies and Timberland PRO, for which FY25 revenues were $833mn, operating profit was $53mn, and OM was 6.4%. At a price of $600mn, the all-cash consideration price can pay down at least EUR500mn (roughly USD588mn) of total long-term debt outstanding of ~$4.15bn as of the end of FY1Q26. We note that VFC had a net debt leverage ratio of 4.1x times FY25 adj. EBITDA."

For an analyst ratings summary and ratings history on VF Corp. click here. For more ratings news on VF Corp. click here.

Shares of VF Corp. closed at $14.71 yesterday.

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