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Fly News Breaks for January 8, 2020
VFC
Jan 8, 2020 | 08:04 EDT
As previously reported, Wedbush analyst Christopher Svezia downgraded VF Corp. to Neutral from Outperform with a $98 price target. The analyst cited valuation and investor expectations for upside generated by Vans and to a lesser extent TNF ahead of results. While the analyst believes VF Corp. "deserves" to trade more in line with its athletic and outdoor peers given it is now a cleaner, higher growth company, he sees 26-times as a fair value.
News For VFC From the Last 2 Days
VFC
Apr 7, 2020 | 07:01 EDT
As a proactive, precautionary measure, VF will draw down the remaining $1B available under its current senior unsecured revolving credit facility. Moreover, in an abundance of caution and to best position VF to capitalize on opportunities as it emerges from the COVID-19 pandemic, VF is exploring alternatives to further enhance financial liquidity and flexibility of its capital structure. Following this draw down, VF currently has approximately $2.4B of cash on hand. VF intends to proceed with the divestiture of its Occupational Workwear business as announced on January 21 and is actively engaged with prospective buyers. VF has made the decision to temporarily pause its share repurchase program. The company currently has $2.8B remaining under its current share repurchase authorization. Subject to approval by its Board of Directors, VF intends to continue to pay its regularly scheduled dividend and is not contemplating the suspension of its dividend program at this time.
VFC
Apr 7, 2020 | 07:00 EDT
VF announced additional actions to support its employees' well-being and advance its Enterprise Protection Strategy in response to the COVID-19 pandemic. VF's actions to support its business and employees include: during the next four months, the base salary for CEO Steve Rendle will be temporarily reduced by 50% and the base salaries for VF's Executive Leadership Team will be temporarily reduced by 25%; VF's Board of Directors will forgo their cash retainer for the next four months, also to be reviewed and modified as necessary at the end of the four-month period; all VF offices and retail locations across North America remain closed until May 3. Retail employees will continue receiving full pay and benefits during this time. All office-based employees continue to receive full pay and benefits while working remotely. All VF offices across the EMEA region remain closed until May 3 with employees working remotely. Retail stores in the region will remain closed until further notice. To leverage various government support programs that have been made available across EMEA countries, VF has decided to temporarily reduce the working time for employees while keeping salaries at or above 95% of normal pay for office-based, wholesale and distribution center associates, while retail employees will still receive full pay during this time. Many VF offices in APAC remain closed with employees continuing to work remotely. However, most of VF's retail stores in the region, particularly Mainland China, have re-opened for business. All employees in the APAC region continue to receive full pay and benefits.