V.F. Corporation (VFC): A Bull Case Theory

We came across a bullish thesis on V.F. Corporation on Matt McClintock Retail/Consumer Research - M Squared Capital’s Substack by Matthew McClintock. In this article, we will summarize the bulls’ thesis on VFC. V.F. Corporation's share was trading at $20.10 as of February 5th. VFC’s trailing and forward P/E were 37.16 and 18.42 respectively according to Yahoo Finance.

V.F. Corporation, together with its subsidiaries, offers branded apparel, footwear, and accessories for men, women, and children in the Americas, Europe, and the Asia-Pacific. VFC appears to be firmly back on a growth trajectory for the first time since FY23, with 75% of its business growing this quarter, up from 65%-70% last quarter and 60% in 1Q26. This momentum is broad-based, reflecting progress across multiple segments and geographies, and investors may find it increasingly difficult to ignore the trend.

The Americas stand out as a particularly strong region, with management noting it as one of the company’s best performances in over three years. Growth in the direct-to-consumer (DTC) channel is especially encouraging, as it closely reflects ultimate consumer demand and provides the fastest lever for scaling new products, particularly through digital platforms. Gross margin trends are positive, with management optimistic about reaching or exceeding the long-term target of 55%, aided by pricing benefits coming in Q4 to mitigate earlier tariff impacts.

Vans, while still facing revenue headwinds due to double-digit declines in new product sales, shows signs of stabilization, with the brand expected to decline only in the mid-single digits in 4Q26. Global e-commerce growth, the first in over four years, highlights the strength of digital channels, though physical store traffic remains uneven.

VFC is also cultivating Altra as a high-potential brand, controlling distribution to build long-term value, with a $1 billion revenue target in sight. Management emphasizes a disciplined approach to debt, favoring organic growth over M&A, and maintains a transparent guidance philosophy designed to hit the top end of the range when possible. With robust DTC and digital execution, broad-based recovery, and disciplined management, VFC presents a compelling case for sustainable, multi-channel growth, signaling a strong upside trajectory for investors.

Previously, we covered a bullish thesis on V.F. Corporation (VFC) by Fun-Imagination-2488 in April 2025, highlighting the turnaround under Bracken Darrell, improved revenue, EPS, gross margins, debt reduction, and focus on core brands. VFC’s stock price has appreciated by approximately 72% since our coverage. Matthew McClintock shares a similar thesis but emphasizes broad-based growth, DTC and digital strength, and the Altra brand’s long-term potential.

V.F. Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held VFC at the end of the third quarter which was 35 in the previous quarter. While we acknowledge the risk and potential of VFC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VFC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.