VF Corporation (NYSE:VFC), a key player in the apparel industry, has completed the disposition of its Supreme brand, as revealed in a recent 8-K filing with the Securities and Exchange Commission.
The transaction was finalized on Monday, marking a significant shift in the company's brand portfolio.
The filing included unaudited pro forma condensed consolidated financial statements, offering a glimpse into VF Corporation's financial position post-transaction. These statements reflect adjustments related to the Supreme sale as of June 29, 2024, and cover the financial performance for the three months ending on that date, as well as for the fiscal years ending on March 30, 2024, April 1, 2023, and April 2, 2022.
VF Corporation's decision to divest the Supreme brand aligns with its strategic reorientation, as the company continues to adapt to the ever-evolving fashion and retail landscape. The sale is expected to impact VF Corporation's future revenue streams and investment focus.
This news article is based on the information provided in the SEC filing and does not include any speculative content or subjective assessment.
In other recent news, VF Corp has been the subject of various analyst reports. Jefferies initiated coverage on the company with a hold rating and a $20 target price, citing promising trajectories due to new management strategies and cost-cutting measures. Barclays (LON:BARC) upgraded VF Corp to Overweight from Equal-weight and raised its price target to $22, anticipating beneficial organizational changes under the leadership of CEO Bracken Darrell.
BMO Capital maintained its Market Perform rating on VF Corp with a steady price target of $14, revising its earnings forecasts following the release of profit and loss details for the Supreme brand. Williams Trading reiterated its Sell rating on VF Corp with a steady price target of $10, expressing skepticism about the company's reliance on The North Face brand.
InvestingPro Insights
As VF Corporation (NYSE:VFC) completes the sale of its Supreme brand, InvestingPro data provides additional context to the company's financial situation. Despite the recent divestiture, VFC's market capitalization stands at $7.6 billion, reflecting its significant presence in the apparel industry. The company's revenue for the last twelve months as of Q1 2025 was $10.28 billion, with a gross profit margin of 51.9%, indicating a strong ability to generate profit from its core business operations.
InvestingPro Tips highlight some interesting aspects of VFC's current position. The company has maintained dividend payments for 54 consecutive years, demonstrating a commitment to shareholder returns even in challenging times. This is particularly noteworthy given the recent sale of Supreme and the company's strategic reorientation. Additionally, VFC has seen a strong return over the last three months, with InvestingPro data showing a 50.69% price total return in this period.
However, investors should note that 7 analysts have revised their earnings downwards for the upcoming period, and the company was not profitable over the last twelve months. These factors may be influencing VFC's strategic decisions, including the Supreme brand sale.
For those seeking a deeper understanding of VFC's financial health and future prospects, InvestingPro offers 10 additional tips, providing a comprehensive analysis to inform investment decisions.
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