anilbolukbas V.F. Corporation ( NYSE: VFC ) sells branded apparel, footwear, and accessories under a portfolio of brands.
The brands include large, globally recognized names such as the North Face, Vans, Timberland, and Dickies, but also smaller brands including Icebreaker, Napapijri, JanSport, and Supreme which was acquired in 2020 for $2.1 billion. The stock has lost the majority of its value from 2021 forward, with VFC’s poor brand management and expensive M&A strategy, leading to high debt and poorly performing brands.
A thorough turnaround plan is in motion, but no effects were yet seen in Q4 , as revenues declined by -13.4%. Ten Year Stock Chart (Seeking Alpha) VFC’s Lackluster Brand Performance Sees No End Yet VFC has had a weak recent history of growing many of the company’s key brands.
Vans, VFC’s largest brand until FY2024, revenues have shrunk from $4063.4 million in FY2020 , prior to large Covid pandemic issues to just $2785.7 million in FY2024 at a CAGR of -9.
0%. Timberland, the third largest VFC brand, has had a CAGR of -3.1% in the same period with Dickies following at a -1.
1% CAGR – it seems that the company is unable to adapt to changing customer demand with many stagnant brands. The 2020 acquisition of Supreme is also an example of VFC’s history of poorly led brands. The brand added around $500 million to VFC’s sales in FY2022, with ambitious plans to scale the growth into $1 billion through new stores, brand collaborations, and global expansio.