V.F. Corporation Shares Drop Following Downgrade to “Sell” Rating by Williams Trading
January 31, 2023
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V.F. ($NYSE:VFC) Corporation is a leading apparel and footwear company whose portfolio of brands includes Lee, Wrangler, The North Face, Timberland and Vans. On Thursday, shares of V.F. Corporation dropped in early trading after Williams Trading downgraded its rating for the company from Hold to Sell. Williams Trading analyst, David White, cited a lack of visibility in the market due to the ongoing pandemic as one of the reasons for the downgrade. He also noted that while V.F. Corporation has seen an increase in online sales, it has been unable to make up for the significant decrease in store sales. White also noted that while V.F. Corporation has taken steps to reduce costs, it may not be enough to offset losses due to the pandemic. This is the latest in a series of challenges faced by the company since the start of the pandemic. Despite these challenges, V.F. Corporation is still well-positioned to take advantage of opportunities that may arise as the economy recovers. In addition, its portfolio of brands is still popular with consumers and its online sales are continuing to grow. With the pandemic still ongoing, it is unclear what the long-term effects will be on V.F. Corporation’s share price and overall performance.
However, the downgrade from Williams Trading has caused investors to take a more cautious approach with the stock and could lead to further volatility in the near term.
Price History
This downgrade caused the stock to open at $29.5 and close at $28.4, a decrease of 5.5% from its prior closing price of $30.1. The downgrade came after V.F. CORPORATION missed their earnings expectations for the second quarter of the year. The downgrade of V.F. CORPORATION’s stock has caused many investors to become concerned about the company’s future. The company has been struggling to maintain their profit margins due to an increasing amount of competition in the market.
Additionally, the company has had difficulty in keeping up with changing consumer trends and preferences, resulting in lower sales and profits. The downgrade of V.F. CORPORATION’s stock has caused many analysts to question the company’s long-term prospects. While the company is still profitable, there is a fear that it may not be able to sustain its current level of profitability over the long-term. This has caused investors to be wary of investing in the stock, resulting in the recent drop in price. Overall, the downgrade of V.F. CORPORATION’s stock has caused investors to become concerned about the company’s long-term prospects. While the company is still profitable, there is a fear that it may not be able to sustain its current level of profitability over the long-term. This has caused investors to be wary of investing in the stock, resulting in the recent drop in price. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for V.f. Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 11.79k | 424.25 | 6.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for V.f. Corporation. More…
| Operations | Investing | Financing |
| 121.47 | -280.33 | -500.23 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for V.f. Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.78k | 10.7k | 9.09 |
Key Ratios Snapshot
Some of the financial key ratios for V.f. Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -2.7% | -5.5% | 10.8% |
| FCF Margin | ROE | ROA |
| -1.3% | 22.5% | 5.8% |
VI Analysis
V.F. Corporation is a company whose fundamentals reflect its long-term potential. To assess this potential, VI App provides a comprehensive analysis of the company. The VI Risk Rating for V.F. Corporation shows that it has medium risk associated with it when it comes to financial and business aspects. This rating takes into account the company’s size, liquidity, and financial strength. VI App has also detected two risk warnings in the company’s income sheet and balance sheet. These are important alerts to consider when assessing the company’s potential. To access more details about these warnings, users must become a registered user of the app. Overall, V.F. Corporation has potential as a long-term investment, but it is important to consider the risk associated with it. By accessing the comprehensive analysis provided by VI App, users can make more informed decisions about whether this is the right investment for them. More…
VI Peers
VF Corporation is an American multinational apparel and footwear company with more than 30 brands, including Vans, The North Face, Timberland, Kipling, and Wrangler. VF is the largest apparel company in the world and its products are sold in more than 170 countries. Capri Holdings Ltd, Under Armour Inc, and Hanesbrands Inc are all VF’s competitors in the apparel industry.
– Capri Holdings Ltd ($NYSE:CPRI)
As of 2022, Capri Holdings Ltd has a market cap of 6.42B and ROE of 25.1%. The company is a global fashion luxury group, whose brands include Michael Kors, Jimmy Choo, and Versace. It has a strong presence in North America, Europe, and Asia, with over 500 stores in more than 50 countries.
– Under Armour Inc ($NYSE:UAA)
Under Armour Inc is an American sports clothing and footwear company. The company’s products are designed to improve athletic performance. Under Armour was founded in 1996 by Kevin Plank, a former University of Maryland football player. The company is headquartered in Baltimore, Maryland.
– Hanesbrands Inc ($NYSE:HBI)
Hanesbrands is a publicly traded clothing company with a market capitalization of $2.41 billion as of 2022. The company’s return on equity, a measure of profitability, was 54.97% as of the same year. Hanesbrands produces a variety of clothing items, including underwear, socks, t-shirts, and sweatshirts. The company also manufactures and markets a range of other products, such as towels and blankets. Hanesbrands operates in the United States, Canada, Mexico, Europe, Asia, and Australia.
Summary
Investors in V.F. Corporation were caught off guard when Williams Trading downgraded the stock to a “Sell” rating on the same day that the stock price moved significantly lower. This downgrade has caused many investors to reassess their investments and question the lasting effects of the move. Despite this, investors should still carefully analyze the company’s financials and performance before making any decisions.
They should also consider the company’s long-term prospects and determine if any potential upside outweighs the risks associated with the downgrade. Overall, it is important for investors to stay informed and remain vigilant when considering their investments in V.F. Corporation.
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