V.F. Corp. (VFC) Launches Timberland Store in Washington
In sync with its expansion plans, V.F. Corporation VFC announced the opening of a new Timberland specialty retail store in the Seattle area. Located in the U.S. state of Washington, at 245 Bellevue Square in Bellevue, the new outlet has introduced Timberland’s rugged-to-refined collections of footwear, apparel and accessories to its customers in Seattle and the neighboring communities.
Spanning about 2,900 square feet, the store will house Timberland’s signature elements like a "boot wall," while it will also mark the launch a new feature called the central "social hub." With this, customers will be educated about product care methods post purchase, can get their laces customized and take a peek into the new products through interactive presentations. Also, the store will feature a wide range of Timberland Boot Company footwear.
V.F. Corp. acquired Timberland in 2011 and the brand has been on an expansion track since then. The company opened a Timberland store each in the U.K. and Ireland in Nov 2015. These additions are likely to enhance Timberland’s popularity among young customers, taking it closer to its goal of becoming a leading lifestyle brand.
Apart from this, V.F. Corp. is aggressively looking for opportunities to expand its international operations, particularly in the Asia Pacific, which is one of the fastest growing regions. Moreover, the company, which successfully achieved its target of 38% contribution from international operations in 2014, expects to increase the figure to 43% by 2017. We believe that the company’s sustained focus on expanding its global operations will boost its top line in the long run, while reducing the risk of operating in a single market.
V.F. Corp. currently carries a Zacks Rank #4 (Sell). The company posted dismal top and bottom lines for the fourth quarter of 2015, battered by a soft consumer environment, lingering currency headwinds and an unseasonably warm weather. Further, the company’s guidance for 2016 indicates that results will continue to bear the brunt of a stronger U.S. dollar.
Nevertheless, V.F. Corp.’s focus on strategic acquisitions and expansion of global operations point to its growth prospects. Moreover, its solid brand portfolio and opportunities with regard to distribution bode well.
Stocks to Consider
Some better-ranked stocks in the same industry include Columbia Sportswear Company COLM, with a Zacks Rank #1 (Strong Buy) and Delta Apparel Inc. DLA, carrying a Zacks Rank #2 (Buy). Another well-ranked stock in the related industry is American Eagle Outfitters Inc. AEO, sporting a Zacks Rank #1.
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