Your second chance to gain from VF

Article Excerpt

In August 2018, we alerted our readers to a plan by clothing giant VF Corp. to set up its Wrangler and Lee jeanswear business as a separate company (called Kontoor Brands, see page 18). The move freed both the parent and the spinoff to better focus on their core businesses. That improves long-term prospects for your investments in both companies. Following the spinoff, VF’s shares rose from around $87 to $100 by late 2019. They have since moved down to the current price on coronavirus fears in China. As it has for many global clothing manufacturers, the outbreak has forced the company to temporarily close 60% of its stores in that country. However, as part of a plan to add value for investors, VF is now looking at strategic alternatives for its workwear brands. The spinoff or sale of that business should further sharpen VF’s focus on its fastest-growing consumer brands and enhance your long-term gains. VF CORP. $83 is a buy. The stock (New…