V.F. (VFC) Stock Forecast & Price Target

VF Corporation is expected to show improved financial health, with projections estimating free cash flow of $493 million in FY26 and $796 million in FY27, as well as a reduction in net leverage from 4.1x in FY26 to 2.8x in FY27. The recent $600 million sale of the Dickies brand has strengthened the company's balance sheet, demonstrating favorable valuation metrics at 1.2x EV/S and 15x EV/EBITDA, which contribute positively to its growth outlook. Strong performance in the fiscal first quarter highlighted by stronger sales, improved gross margins, and effective cost management further supports the positive outlook for VF Corporation's stock.

The analysis of VF's financial outlook reveals a concerning trend, particularly with the Dickies brand, which experienced a 12.3% year-over-year revenue decline from $618.4 million in FY24 to $542.1 million in FY25, and is projected to contribute even lower revenues of $488 million moving forward. Additionally, VF Corporation's EBIT guidance for FQ2 has fallen short of expectations due to a timing shift in wholesale shipments, indicating challenges in maintaining consistent revenue flow. The company's acquisition of Dickies in 2017 for $820 million—which has led to a deterioration in margin structure and leverage profile—highlights a series of strategic missteps that pose ongoing risks to profitability.