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

The financial performance of VF Corporation indicates a positive outlook, characterized by revenue growth in key brands and segments, with Timberland and The North Face both experiencing a 4% increase in sales year-over-year. The Other segment also contributed positively, accounting for 14% of revenue and reporting a 3% increase in sales to $379 million. Furthermore, the expectation of year-over-year growth in free cash flow for FY26, despite challenges associated with the Dickies sale and tariffs, reinforces the company's solid financial management and operational efficiency.

The analysis of VF's recent financial performance reveals a concerning trend, highlighted by Vans’ continuing decline with a 2Q revenue drop of 11% year-over-year on a constant currency basis, despite a modest improvement compared to previous quarters. The company anticipates a further revenue decline of 1%-3% in the upcoming fiscal third quarter, indicating ongoing sales challenges that are compounded by expected gross margin deterioration due to tariffs. Additionally, while total inventory saw a notable decrease of 10.9% year-over-year, this may reflect weak demand and further support a pessimistic outlook on VF's overall financial health.