VF Corporation stock analysis December 2022

VF Corporation is one of the largest apparel companies in the world.

The company was originally founded by John Barbey, a banker, and a group of investors in October 1899 in Pennsylvania.

Main brands:

- Vans

- The North Face

- Timberlands

- Dickies

Investor Day 2022

VF Corp wants to position itself for long-term and broad-based growth.

VF estimates the TAM for their target markets (Total Addressable Market) at more than $600 billion.

The targeted sales growth by 2027 is given as 5 - 9%.

VF is committed to the continuous development of the brand portfolio.

A payout ratio of ~50% is targeted for the dividend payments.

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Portfolio Overview 2022:

VF can shine with a steady growth performance from the recent past:

Moody's Rating October 2022

Moody changes the outlook from "Stable" to "Negative" and keeps the rating at the lower end of the Prime 2 scale. Moody believes that VFC's strong brand position and history will enable it to meet all financial requirements including the dividend.

The change in outlook to negative reflects VF's weaker than expected near-term operating performance expectations, the increasingly challenging operating environment and higher than expected debt.