V.F. Corporation VFC has been on a stellar run, with its stock jumping an impressive 24.8% in the past three months. This rally, driven by a robust financial performance and growth initiatives, has caught the attention of investors. But with such a meteoric rise, the key question arises: should investors lock in gains, or is there still room for growth?

Demand for V.F. Corp's brands remained robust in the third quarter of fiscal 2025, fueling the company's fourth consecutive quarter of revenue growth and strengthening its overall performance. In the said period, VFC comfortably outpaced the Zacks Textile - Apparel industry’s rise of 3.7%. Its brand strength and operational capabilities have also helped it outperform the broader Consumer Discretionary sector and the S&P 500 index, which posted growth of 0.5% and 0.9%, respectively.

VFC’s Three-Month Stock Performance

Image Source: Zacks Investment Research

V.F. Corp stock closed at $25.51 on Friday, positioning it 12.1% below its 52-week high of $29.02 reached on Jan. 29.

Moreover, VFC has shown solid upward momentum, currently trading above both its 50 and 200-day simple moving averages of $23.55 and $18.43, respectively, key indicators of price stability and long-term bullish trends. This technical strength, coupled with continued momentum, signals positive market sentiment and growing investor confidence in VFC's financial health and growth potential.

VFC Trades Above 200 & 50-Day SMAs

Image Source: Zacks Investment Research

V.F. Corp.’s Fundamental Drivers & Strategic Initiatives

The company's direct-to-consumer (DTC) and wholesale channels demonstrated strong performance in the third quarter of 2025. DTC showed continued improvement globally, benefiting from holiday season demand, particularly for The North Face and Timberland. Meanwhile, the wholesale channel outperformed expectations, driven by stronger reorders, lower cancellations and a favorable shift of deliveries from the fourth to the third quarter.

VFC is actively pursuing its Reinvent transformation program, which focuses on brand-building and enhancing operating performance. The company continues to make progress on its four key strategies: reducing costs, strengthening the balance sheet, fixing the Americas and turning around Vans. These initiatives are designed to drive long-term profitability and position VFC for sustained growth.

As a result of this progress, VFC recently outlined its medium-term financial goals, aiming for an adjusted operating margin of at least 10%, an adjusted gross margin of a minimum of 55%, and an adjusted SG&A, as a percentage of revenues, of 45% or lower. Additionally, the company is targeting net leverage of 2.5x or below, reinforcing its commitment to financial discipline and operational efficiency.

VFC is making strong progress in reducing its cost base through targeted savings, with a goal of achieving a $300 million run rate in initial gross reinvest cost savings by fiscal 2025. In the third quarter of fiscal 2025 alone, the company generated $55 million in savings. VFC is also implementing process and organizational changes aimed at driving $500-$600 million in operating income expansion, with half of these gains expected to come from SG&A expense reductions. These initiatives align with VFC’s long-term goal of achieving at least a 10% operating margin by fiscal 2028.

While cost optimization is expected to restore double-digit profitability, its broader impact lies in fueling growth. VFC is reinvesting a portion of these savings into product innovation and brand building, aiming to boost creativity, strengthen product development and elevate marketing. By enhancing consumer insights, refining targeting strategies and standardizing processes, the company is positioning itself for sustained competitive advantage.

Here’s How Estimates Stack Up for VFC

Reflecting the positive sentiment around V.F. Corp, the Zacks Consensus Estimate for earnings per share has seen upward revisions. In the past 30 days, EPS estimates for the current quarter and fiscal year have increased by 68.8% and 18.9% to 73 cents and $1.07 per share, respectively.

Image Source: Zacks Investment Research

Final Thoughts on VFC Stock

V.F. Corp presents a compelling buy opportunity, backed by strong momentum, operational improvements and a clear path to long-term profitability under its Reinvent transformation program. The company’s focus on cost reduction, balance sheet strength and brand revitalization, especially with The North Face and Timberland, positions it for sustained growth. With robust DTC and wholesale performance, improving margins and a reduced leverage ratio, VFC is well-equipped to drive shareholder value. The Zacks Rank #2 (Buy) company presents an attractive opportunity for investors seeking long-term growth.

Three Other Picks You Can’t Miss

We have highlighted three other top-ranked stocks, namely, Under Armour UAA, Gildan Activewear GIL and lululemon athletica LULU.

Under Armour is one of the leading designers, marketers, and distributors of authentic athletic footwear, apparel and accessories for a wide variety of sports and fitness activities in the United States and internationally. It has a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for UAA’s fiscal 2024 sales and earnings indicates declines of 9.9% and 44.4%, respectively, from the year-ago reported figures. Under Armour delivered an earnings surprise of 98.6% in the trailing four quarters, on average.

Gildan Activewear, a manufacturer of premium quality branded basic activewear, carries a Zacks Rank of 2 at present. GIL has a trailing four-quarter earnings surprise of 5.3%, on average.

The consensus estimate for Gildan Activewear’s current financial-year EPS indicates growth of 16% from the year-ago figure.

lululemon is a yoga-inspired athletic apparel company. LULU carries a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for lululemon’s current financial-year sales and EPS indicates growth of 9.7% and 12.5%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 6.7%, on average.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

V.F. Corporation (VFC) : Free Stock Analysis Report

lululemon athletica inc. (LULU) : Free Stock Analysis Report

Gildan Activewear, Inc. (GIL) : Free Stock Analysis Report

Under Armour, Inc. (UAA) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research