Outdoor and footwear brands exhibited strength in the fourth quarter, and the positive trend appear to have continued into Q1.
VF Corp (NYSE: VFC)'s stock seems undervalued ahead of the Jeanswear segment spin-off into Kontoor Brands, according to Cowen.
The North Face has invested in product innovation and improved segmentation, Kernan said in a Tuesday note.
This — along with favorable weather conditions and increased spending on demand creation — has resulted in the brand’s improved performance among customers, the analyst said.
The proprietary Cowen Consumer Tracker Survey indicates that North Face is recapturing share in the outerwear market.
VF Corp’s FY19 guidance implies a slowdown in global revenue growth at Vans to 14 percent in Q4, down from the 27-percent generated in both Q2 and Q3, Kernan said. Management’s FY20 guidance implies a deceleration to low-double-digit growth, and these figures could prove conservative, he said.
Citing strength at Vans and the North Face recovery, Kernan said VF Corp. could achieve 15-percent-plus EPS growth on a multiyear basis.
VF Corp. shares were down 0.36 percent at $86.59 at the time of publication Tuesday.
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Nike's 'Tanjun' Was The Bestselling Shoe Of 2018; Mid-Market Footwear Dominates Top 10
Public domain photo via Wikimedia.
Latest Ratings for VFC
|Feb 2019||Cowen & Co.||Maintains||Outperform||Outperform|
|Jan 2019||Deutsche Bank||Downgrades||Buy||Hold|
|Jan 2019||Wells Fargo||Maintains||Market Perform||Market Perform|
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