Cramer was going to break this story tonight, but you'll read it here first.
Turns out, all these college kids with their North Face "gear" are just another chapter in the avalanche of sub-prime woes. It seems, Mommy and Daddy purchased this fancy clothing as a result of "off the books" borrowing transactions by calling this essential "gear" a college necessity and rolling it up into the student loan process. VFC's potential losses due to loan defaults are undetermined at this point.
Now that is just retarded. VF would not be affected by mommy and daddy defaulting on juniors student loans. The purchase of the jacket has already taken place, so that debt would have to be settled with the lendor, VF/North Face has already made the sale. If, going forward, mommy and daddy realize that they can't afford the $150 Denali jacket, then that would affect sales. Take a look at any mall in America and you can see that mommy and daddy are still shilling out the bucks for this brand.