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Investing.com - Williams Trading has reiterated its Sell rating and $10.00 price target on VF Corp. (NYSE:VFC), a $5.7 billion market cap apparel company, following the company’s announcement of a deal to sell its Dickies brand. According to InvestingPro data, VF Corp has maintained dividend payments for 55 consecutive years, though the stock has experienced significant volatility with a -29.5% year-to-date return.
VF Corp. announced Monday that it has agreed to sell Dickies to Blue Star Alliance for $600 million in cash, according to Williams Trading. Blue Star Alliance is a private company that owns several fashion brands including Palm Angels, Off-White, and Hurley.
The transaction is expected to close by the end of the 2025 calendar year, with proceeds likely being used to pay off VF Corp.’s €500 million term loan due in March 2026.
Williams Trading indicated it is not adjusting its estimates for VF Corp. at this time due to limited information provided in the company’s press release about the deal.
The research firm noted that "Without adequate information regarding the profitability of Dickies, our estimates are likely to be wrong."
In other recent news, VF Corporation reported its first-quarter earnings for fiscal year 2026, surpassing market expectations. The company posted an adjusted loss per share of $0.24, beating the forecasted loss of $0.33, and generated revenue of $1.8 billion, exceeding the anticipated $1.7 billion. Additionally, VF Corporation announced it has entered into a definitive agreement to sell its Dickies brand to Bluestar Alliance for $600 million in cash, a move expected to reduce debt and support growth.
In analyst updates, Baird upgraded VF Corp’s stock from Neutral to Outperform, citing potential recovery in the Vans brand and increased consumer engagement through product and social media initiatives. Conversely, BNP Paribas Exane downgraded VF Corp. from Neutral to Underperform, expressing concerns over slowing performance in The North Face and Timberland brands.
Meanwhile, former VF Corp CFO Matt Puckett has been appointed as the Chief Financial Officer at Ibotta, Inc., after a 23-year tenure with VF, including international finance leadership roles. These developments reflect a period of strategic adjustments and financial recalibrations for VF Corporation.
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