VF Corp Earnings

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VF Corp

First, congrats to those in corp. I introduced that name to readers of the report back in August and pretty much talked about it each week on the podcast. 

I sold all of our position in the fund at the open today sans some 2026 LEAPs.

The one regret is not sizing the position a bit more aggressively at the start of the month meaning adding to the non-equity portion — with more options than I had.

But that’s what it is and we move on.

The call this morning was great but they were a little coy in their replies and my takeaway is that this is not a quick turn around (even though it’s nearly a 2 bagger from last September). The Vans brand is probably (at least 3-4 quarters out) from improvement and I think most of the “fast money” from the cost reductions, paying down of the debt with the Supreme sale and other bottom line fixes are done, for now.

The Vans brand is the key as I see it and enough that they are making plans to have moved to CA and mentioned it again on the call.

It’s also a key point on their earnings presentation.

Turnarounds are not instant - and this resonates with me because of the turnaround I led on a clothing/golf brand in 2020 called Jack Grace USA: the initial “quick fixes” are relatively easy it’s the rest that takes a bit of time and that's expected.

When this brand gets going so does the rest of this and I think that’s where my focus is in the coming months and I expect this to be a 1-2 year play now after this which is fine and fits into the mandate we run on the hedge fund side of 6-12 Core positions in a 6-24 month window.

This was from last earnings call for reference.

If they can also get the NorthFace brand to improve that’s a plus as well and the SKIMS collaboration was a hit from what I saw on social media.

As of now I want to wait for this to come back in to $18-$21s - maybe a bit higher but the move was just so extended into this event so I expect it to normalize a bit into their next investor day which was also discussed on the call today.

Congrats to those who followed into this and to those in the AST Swing Portfolio.

Thanks for reading.

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Dan