V.F. Corporation: Slowing Growth And An Over-Reliance On China Are A Bad Combination

Deep Value, medium-term horizon, long-term horizon

The slow-down in Vans growth is concerning, especially in EMEA, and the company is too reliant on China.

Direct to Consumer Sales, specifically digital sales, are growing at an unsustainable rate.

The North Face, Timberland, and VFCs brands other than Vans are likely to grow in the mid-single-digits long term.

There is no substitute in the retail business for strong brands. Few industries are more competitive than retail clothing, and having strong brands that provide a company pricing power is critical.