Spinoff Report
VFC: One-Time Earnings Blip Provides Opportunity for Investors
Following the completion of Kontoor Brands, Inc.'s (KTB) Spinoff in May 2019, we expected VF Corp. (VFC) to benefit from its stronger financial position and reduced leverage. Additionally, the high-growth and high-margin business was to be supported by a share buyback program and dividends for longer-term capital returns to shareholders. The company's top brands (Vans and The North Face) continue to outperform, and the management has highlighted new investments to foster further growth.

  • Existing Investors Recommended to Accumulate VFC at Current Levels / Share Repurchase Plan & Dividends Pay Off
  • VFC in a Stronger Position Post-KTB Spinoff / High-Growth & High-Margin Business on Track to Achieve FY20E Guidance
  • Top Brands (Vans & The North Face) Continue to Outperform / Focused on Direct-to-Consumer Revenue of 10 to 12%
  • Proactive Management Announces New $16m Investment in "FutureLight" Activewear / Current Discount to Peers
  • Target Prices Unchanged / VFC is a Current Spinoff Model Portfolio Holding
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