How can VFC claim they are going to grow this year or next?
What are they not telling us? Their premier brand "The North Face" is now sold in Dick's Sporting Goods. No offense to Dick's, but it's not exactly upscale and they discount heavily. Isn't that called brand dilution? Oh...and there's the economy - how are they going to grow sales and earnings in this environment?
Juicy dividend, but before I buy...Somebody please tell me.
I did not hear the conference call, but the poor results and forecast came as a surprise. Up until now, management was optimistic (or at least not pessimistic) about sales and earnings, in spite of what most other retailers were seeing. The stock price was also moving up nicely until today's big tumble. My concern is management's lack of credibility and what that portends for future stock price action.
I listened to to the conf call yday and they are planning on opening TNF stores. Any sales outside that channel will have to support the brand or it will dilute it. TNF developed its brand and following selling through specialty retailers. While Dick's may not be discount in as much as Target is discount, they do indeed discount heavily and that can be damaging to a brand. Who would buy from a TNF store when they can buy @ Dick's for less?
I imagine there will be some upcoming layoffs throughout VF further perpetuating this down cycle. It is really ugly out there right now. It is surprising that VF is getting spanked for not being totally straight forward with Wall Street. That is a little out of character for them.