How V.F’s (VFC) New US$1.5 Billion Credit Facility Could Shape Its Path Through Brand Challenges

• On August 26, 2025, V.F. Corporation and subsidiaries entered into a new five-year, US$1.50 billion senior secured revolving credit facility led by Wells Fargo, replacing its prior agreement and introducing borrowing capacity for Swiss and German entities, multicurrency options, and flexible expansion features.
• The new credit facility provides enhanced financial flexibility at a time when the company is managing brand underperformance and responding to ongoing legal scrutiny following missed quarterly expectations and a decline at Vans.
• We'll assess how V.F. Corporation's expanded credit facility shapes its investment outlook amid persistent challenges with its leading brand, Vans.

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V.F Investment Narrative Recap

To have conviction in VF Corporation as a shareholder, you would need to believe in the company’s ability to successfully turn around Vans and drive profitable growth across its brand portfolio, despite recent setbacks. The new US$1.50 billion credit facility expands VF’s borrowing capacity and flexibility, but does not materially lessen the most important short-term risk: persistent brand underperformance at Vans, particularly as revenue and earnings remain under pressure.

Of the recent announcements, the company’s guidance for a 2 to 4 percent year-over-year revenue decline for Q2 2026 stands out. This outlook reinforces that the effectiveness and timing of any turnaround, especially in core brands, remains the most meaningful catalyst for sentiment and performance in the near term.

However, investors should be aware that while the new credit agreement adds flexibility, it does not fully address the risk of ongoing...

Read the full narrative on V.F (it's free!)

V.F's narrative projects $10.3 billion in revenue and $571.3 million in earnings by 2028. This requires 2.6% yearly revenue growth and a $466.4 million earnings increase from the current earnings of $104.9 million.

Uncover how V.F's forecasts yield a $15.19 fair value, in line with its current price.

Exploring Other Perspectives

Eight members of the Simply Wall St Community estimate fair value for V.F. Corporation shares between US$10 and US$27.59. With persistent revenue declines at Vans still weighing heavily on expectations, consider how your view aligns or contrasts with these varied investor perspectives.

Explore 8 other fair value estimates on V.F - why the stock might be worth as much as 81% more than the current price!

Build Your Own V.F Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your V.F research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free V.F research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate V.F's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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