VF Corp. - S&P Global Ratings’ Credit Research

VF Corp.

VF Corp. - S&P Global Ratings’ Credit Research
VF Corp.
Published Sep 09, 2019
11 pages (3777 words) — Published Sep 09, 2019
Price US$ 500.00  |  Buy this Report Now

About This Report

  
Abstract:

The stable outlook reflects our view that VF Corp. will manage its leverage at 1.5x-2.0x as it continues to pursue bolt-on acquisitions. Leverage could temporarily increase above 2.0x; however, we expect the company will demonstrate financial discipline and bring leverage back toward the mid-1x area in 12-18 months following an acquisition. We could lower the ratings if VF Corp's strategic and financial policy becomes more aggressive and the company engages in more shareholder-friendly activities, or if it pursues aggressive debt-financed acquisitions such that leverage increases to and stays above 2.0x. In addition, we could lower the ratings if the margin profile of VF Corp.'s businesses deteriorates due to an unexpected rise in input costs such that the company is unable

  
Brief Excerpt:

... top priority. Over the past two years, the company acquired Williamson-Dickie, Icebreaker, and Altra. It also divested Nautica, Reef, and Van Moer, and it completed the spin-off of Kontoor Brands. We expect the company will continue to actively manage its portfolio of brands to operate with greater speed and agility, strengthen its position in faster-growing categories, and strengthen its margin profile. We believe the company has made substantial progress in these areas with its recent portfolios changes, which should enhance operational performance. The EBITDA margin should remain above the industry average. The company's brands resonate well with customers because of its ability to continually innovate and deliver products on trend. The company is transitioning to a consumer- and retail-centric operating model, which will help it meet consumers' needs across all channels. Its effective marketing strategy and its pricing and purchasing power...

  
Report Type:

Full Report

Ticker
Issuer
GICS
Apparel , Accessories & Luxury Goods (25203010)
Sector
Global Issuers
Country
Region
Format:
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "VF Corp." Sep 09, 2019. Alacra Store. May 21, 2025. <http://www.alacrastore.com/s-and-p-credit-research/VF-Corp-2295803>
  
APA:
S&P Global Ratings’ Credit Research. (). VF Corp. Sep 09, 2019. New York, NY: Alacra Store. Retrieved May 21, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/VF-Corp-2295803>
  
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