Yahoo Finance V.F. Corp's (VFC) Vans Brand Announces New Pinnacle Label OTW
V.F. Corporation’s VFC Vans brand has announced a pinnacle category namely OTW. This label will be launched in early 2024, following the exit of Vans’ Vault label by the end of this year. OTW by Vans will come with its distinctive e-commerce experience and a curated selection of wholesale partners globally.
The label will consist of pinnacle apparel and footwear for men’s, women’s and unisex under two separate product lines. The first is OTW by Vans and Premium Standard.
OTW by Vans is likely to collaborate with S.R. STUDIO LA. CA. by Sterling Ruby, whose debut release will launch in early 2024. Also, it expects to partner with PLAYLAB, INC. for a live skate exhibition, as well as with California Skateparks at Paris Fashion Week Menswear Spring/Summer 2024.
This new label promises new silhouettes of sneakers with fewer but better collaborations. Prices are anticipated to be higher than the main line but not luxury.
What’s More?
V.F. Corp is on track with a strategic review of its Global Packs business, consisting of the Kipling, Eastpak and JanSport brands, as well as the divestiture and leaseback of its Europe headquarters in Stabio, Switzerland. VFC has been focused on lowering working capital and optimizing inventories. Also, it has been accelerating its cost-saving efforts, which are likely to generate $225 million annually after the completion of its previously announced actions in fiscal 2024.
Gains from the Supreme buyout act as a key growth driver, as VFC has been gaining from Supreme’s strong follower base in the younger generation. Notably, Supreme revenues grew on a sequential basis in fourth-quarter fiscal 2023.
However, the company has been witnessing a tough operating environment and continued supply-chain headwinds. This led to a sluggish year-over-year performance in the fiscal fourth quarter. Adjusted earnings per share of 17 cents declined 62% year over year. On a constant-currency (cc) basis, adjusted earnings per share were down 55%.
Net revenues of $2,739.6 million fell 3% year over year. At cc, revenues were flat. The top line was hurt by sluggishness in the Americas region on a tough wholesale environment, partially offset by growth in the EMEA and APAC regions. Channel-wise, wholesale and direct-to-consumer revenues were down 5% and 1% year over year on a reported basis, respectively. For first-quarter fiscal 2024, VFC predicts a revenue decline in the high-single digits, indicating a challenging U.S. wholesale environment.
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Consequently, shares of this Zacks Rank #4 (Sell) company have lost 4.4% in the past three months against the industry’s growth of 11.1%.
Stocks to Consider
Some better-ranked companies are Bluegreen Vacations BVH, Royal Caribbean RCL and lululemon athletica LULU.
Bluegreen Vacations sports a Zacks Rank #1 (Strong Buy) at present. BVH has a trailing four-quarter earnings surprise of 24.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BVH’s 2023 sales and EPS indicates increases of 3.6% and 17.6%, respectively, from the year-ago reported levels.
Royal Caribbean sports a Zacks Rank #1 at present. RCL has a trailing four-quarter earnings surprise of 26.4%, on average.
The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates increases of 47.9% and 158.3%, respectively, from the year-ago period’s reported levels.
lululemon athletica is a yoga-inspired athletic apparel company. LULU carries a Zacks Rank of 2 (Buy) at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 16.7% and 18%, respectively, from the year-ago reported figures. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.
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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
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Bluegreen Vacations Holding Corporation (BVH) : Free Stock Analysis Report
