V F Corp: Early wholesale orders bolster results, but some signs of progress at Vans

Research evidence excerpt

V F Corp: Early wholesale orders bolster results, but some signs of progress at Vans

Accessible version

V F Corp

Early wholesale orders bolster results, but

some signs of progress at Vans

Reiterate Rating: UNDERPERFORM | PO: 15.00 USD | Price: 16.21 USD

4Q earnings helped by pull-forward 21 May 2026

VFC reported sales ahead of expectations (+3% ccy), aided by earlier deliveries at Vans Equity

and TNF, plus a $50mn (230bp) tariff refund benefit. Mgmt guided for FY27 sales +1-

2% ccy and adjusted operating margins of 8%. We are reducing our F27E EPS by 2.5% to

Key Changes$0.97 to reflect the pull-forward from 1Q and maintaining our $15 PO, now based on 10x

FY28E EV/EBITDA (was 10x F27E) as we roll forward our valuation year. We retain our (US$) Previous Current

Underperform rating, as we continue to lack confidence in a near-term Vans turnaround. 2027E Rev (m) 9,536.1 9,460.8

2028E Rev (m) 9,874.9 9,699.4

Looking for clean Vans improvement 2029E Rev (m) NA 10,045.5

Vans revenue declined 5% in 4Q, aided by ~2 points of wholesale order pull-forward 2027E EPS 1.00 0.97

from 1Q. This is a slight improvement from sales down HSDs the last four quarters 2028E EPS 1.12 1.11

(adjusted for marketplace actions). We are encouraged that Americas returned to growth 2029E EPS NA 1.13

for the first time in nearly four years, led by DTC (+5%). Vans is seeing green shoots in

product, with slip-ons and apparel back to growth, and improving traction on fashion Lorraine Hutchinson, CFA

drops. Management guided Vans down HSD in 1Q and MSDs in F27 with sequential ResearchBofAS Analyst

improvement through the year. We remain cautious on the recovery trajectory globally as +1 646 855 0951

lorraine.hutchinson@bofa.com

there is more work to do to improve the international trajectory.