Turnaround in motion: Why VF Corp is back on investors’ radar
Investing.com -- VF Corporation (VFC), the parent company of brands such as Vans, The North Face, and Timberland, has been upgraded to a “Buy” rating by analysts at BTIG, citing improving growth prospects and stronger brand performance after several years of decline.
The upgrade comes after nearly five years of downward earnings revisions, with analysts now seeing potential for estimates to rise. A key driver of optimism is the anticipated turnaround of Vans, which has undergone significant restructuring. Once peaking at $4.2 billion in revenue in fiscal 2022, Vans is expected to stabilize at around $2.2 billion in fiscal 2026, providing a more sustainable base for gradual growth.
BTIG has set a price target of $23 for VF Corp shares, implying upside from the current price of around $18. The valuation is based on projected earnings growth and remains in line with industry peers.
BTIG said that recent data indicates early signs of recovery for Vans, including increased web traffic, rising search interest, and improved consumer sentiment. Survey results show stronger brand perception and high purchase intent, suggesting demand could continue to improve into fiscal 2027.
Meanwhile, The North Face (TNF), now VF Corp’s largest brand contributing over 40% of sales, continues to show strong momentum. Growth is being supported by favorable industry trends, increased consumer interest, and solid sales performance, particularly following a strong winter season.
The company’s financial position is also improving. Net debt has fallen significantly—from approximately $6 billion at its peak to $2.7 billion—helped by asset sales and stronger cash flow. Analysts expect further deleveraging in the coming years.
According to analysts, upcoming catalysts include quarterly earnings results, continued execution of turnaround initiatives under new leadership, and further improvements in brand performance. However, risks remain, including potential delays in Vans’ recovery and macroeconomic challenges, particularly in Europe.