VF(VFC) ZACKS·2025-01-15 17:51Stock Performance - VFC is trading above its 50-day SMA of $21.03 and 200-day SMA of $16.84, indicating a strong upward momentum and long-term bullish trend [1][2] - VFC shares have gained 20% in the past three months, outperforming the Zacks Textile - Apparel industry's 12.1% growth, the Consumer Discretionary sector's 5.3% growth, and the S&P 500 index's 1.2% growth [4] Reinvent Transformation Program - The Reinvent program focuses on improving North America's performance, turning around Vans, reducing costs, and strengthening the balance sheet [6] - VFC has achieved $65 million in cost savings in Q3 fiscal 2025, bringing cumulative savings to approximately $200 million, with plans to reach $300 million by the end of the fiscal year [10] - The company is reinvesting some savings into product and brand building while strengthening its balance sheet [11] Operational Improvements - VFC's Americas segment has shown sequential improvement, with early signs of recovery and brand-elevation efforts gaining traction, particularly with the Vans turnaround [12] - Operational efficiency improvements have led to a 120 bps expansion in gross profit margin for Q2 fiscal 2025, with further gross margin gains expected in Q3 due to lower product costs and fewer reserves [13] Strategic Moves - VFC's divestiture of the Supreme brand aims to refocus on core business and improve operational efficiency, enhancing financial flexibility by reducing leverage [8] Growth Outlook - VFC's focus on the Reinvent program, operational improvements, and brand strengthening efforts like Vans and The North Face present a positive growth outlook [14] - The company anticipates sequential improvement in overall business and revenue trends during Q4 fiscal 2025, with gross margin and SG&A growth rates mirroring Q3 [13]