V.F. Corporation (NYSE: VFC) has provided investors with solid gains, appreciating 31.7% over the past three months. This performance outpaces the industry's decline of 3.5% and the S&P 500's 4.4% growth. This gain is attributed to several factors, including its Reinvent transformation program, cost-reduction initiatives and strengthening balance sheet.
One of the most crucial aspects of V.F. Corp's recent progress is its focus on stabilizing gross margins. While the company continues to face near-term uncertainties, it is encouraged by sequential improvements in sales at Vans, one of VFC's key brands. Although overall sales have not yet returned to positive territory, the improvement is a promising sign.
Closing at $18.65, the stock trades close to its 52-week high mark of $20.69 touched in December 2023. Moreover, the stock's current level reflects a premium of 70% from its 52-week low.
The technical indicators show that the stock is trading above both its 50 and 200-day moving averages, indicating strong upward momentum and suggesting sustained investor confidence in the company's performance.
Image Source: Zacks Investment Research
What's Fueling V.F. Corp's Stock Rally?
V.F. Corp remains on track with its Reinvent transformation program, which focuses on brand-building and improving operational performance. The plan targets four key objectives: improving North American performance, turning around the Vans brand, reducing costs and strengthening the balance sheet.
As part of this plan, the company continues to streamline processes and invest in initiatives to drive brand demand and boost growth. In the first quarter of fiscal 2025, V.F. Corp generated $50 million in cost ...
