In a robust trading session, VF Corporation (NYSE:VFC) stock soared to a 52-week high, reaching a price level of $23.13. This milestone reflects a significant recovery, with the apparel giant's shares demonstrating impressive momentum, posting a 67% gain over the past six months and a 26% return over the last year. According to InvestingPro data, the company has maintained dividend payments for 54 consecutive years, though current analysis suggests the stock may be approaching fair value territory. Investors have shown renewed confidence in the company's growth prospects, propelling the stock to this new high over the past year. The ascent to the 52-week high marks a pivotal moment for VF Corporation as it continues to navigate the dynamic retail landscape. While the company currently maintains a "Fair" financial health score on InvestingPro, analysts anticipate a return to profitability this year, with 10+ additional exclusive insights available for subscribers.
In other recent news, VF Corp has seen an upgrade in its stock target by both Guggenheim and TD Cowen due to its promising growth outlook and successful debt reduction. Guggenheim has increased its price target to $27, maintaining a Buy rating, while TD Cowen raised the target to $24, retaining a Hold rating. Both firms anticipate a rise in VF Corp's earnings per share in the coming years, with Guggenheim projecting a compound annual growth rate of over 4%, potentially surpassing $3.00 by FY28E.
Recent developments indicate VF Corp's strategic efforts towards financial stability and growth. The company has outlined medium-term financial goals, including an adjusted operating margin of at least 10%, an adjusted gross margin of at least 55%, and an adjusted SG&A as a percentage of revenue of 45% or lower.
VF Corp reported a year-over-year revenue decline of 6% for Q2 of fiscal year 2025, an improvement from the 10% decline in Q1. The company's gross margin increased to 52.2%, and operating income stood at $315 million. VF Corporation's diluted earnings per share were noted at $0.60.
In a strategic move, VF Corporation divested Supreme, generating net proceeds of about $1.5 billion and repaid $1 billion of term loans. The corporation also achieved $65 million in cost savings in Q2, amounting to $300 million for the fiscal year. For the upcoming quarters, VF Corporation projects Q3 revenue between $2.7 billion and $2.75 billion, with a decline of 1% to 3% year-over-year.
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