V.F. Corp. (NYSE:VFC) shares are among the worst performers this year, with a year-to-date decline of nearly 34%. The apparel and footwear retailer posted dismal fourth-quarter results last week, and investor sentiment in the stock is running low. However, a potential shakeup in its leading portfolio of brands may be on the horizon, signaling possible M&A action for VFC in the coming periods.
Reading the Tea Leaves for VFC’s Top Brands
VFC’s portfolio includes some of the most well-recognized brands, such as The North Face, Timberland, Dickies, Vans, and Supreme. Earlier this month, a report from WWD indicated that VFC had enlisted Goldman Sachs to review its portfolio, and its popular skater brand Supreme may be up for sale. VFC acquired Supreme in 2020 for $2.1 billion. Since then, VFC has expanded Supreme’s presence to new markets, including Korea and China.
Earlier this year, VFC announced a review of its portfolio for possible divestment. Last week, the company stated that the review was complete but did not provide further details. The speculation about a potential sale of Supreme arises as VFC’s other brands, including The North Face and Vans, failed to deliver in Q4. The company noted that Supreme continues to show positive momentum, with an uptick in sales.
According to Just-Styles, Authentic brands or a private equity name could be a likely candidate to snap up Supreme. Besides Supreme, VFC’s Timberland and Dickies brands could also be up for grabs. Other likely candidates for these names include WHP Global, G-III Apparel Group (NASDAQ:GIII), and Sycamore, according to Axios.
What Is the VFC Stock Price Target?
Meanwhile, analysts are sitting on the sidelines on V.F. Corp. with a Hold consensus rating and an average VFC price target of $12.50. At the same time, potential asset or brand sales could put the stock in the spotlight over the coming periods.
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