Analyst Report

Business 101 4 November 2011 Analyst Report Part 1 Executive digest VF Corporation is a multi million-dollar industry that produces and distributes app bels from various brand names. Throughout the past two years VF Corp has performed very well as concluded on its annual report. By looking at the annual report for 2010 it is very clear that VF Corp has performed very well over the past year. The total revenues for 2010 were $482,303 more than than the total revenues for 2009. The long-term debt for the club reduces by $2,612 from 2009.With the various brand names that VF Corp has, it is clear that the total revenue willing always emergence as the demand for those brands increases, which they have been increasing. To add to their brand base VF Corp just recently bought the company timbre so that too will help increase their earnings. By purchasing another popular name brand VF Corp will have a number of appealing brands that the public is always interested in purchasing. This h elps VF Corp in the approaching because the more brands they purchase, the giganticr their consumer population will become.By doing so they are also highlighting one of their major goals intercommunicate in their mission statement, which states Our goal is to continuously exceed the pass judgmentations of our consumers, customers, shareholders and crinkle partners. Part 2 Company Profile Ticker symbol VFC Mission Statement as it is printed in the Annual Report We will grow by building leading lifestyle brands that excite consumers around the world. Ours is a perpetually driven culture, think on constant innovation. Using deep research and insights, we combine the art and science of apparel to create products that excite consumers and brands that inspire loyalty.We responsibly manage the industrys nearly efficient and complex supply chain, which spans multiple geographies, product categories and distribution channels. Our goal is to continuously exceed the expectations of o ur consumers, customers, shareholders and business partners. We help our retail partners win with consistently fast execution and outstanding service. And we continually find ways to improve our performance and generate bottom line results. integrated headquarters location 105 Corporate Center Blvd. Greensboro, NC 27408 Name of CEO Eric C.Wiseman Name of CFO Robert K. Shearer Stock classifications (common, preferred, both) Common Exchange (NYSE, Nasdaq) New York Stock Exchange (NYSE) Part 3 Projections Based on the graph of the stock performance I project that the stock prices will steadily increase in the years to come. During the 2009 recession the stock levels for VF Corp went mound but bounced right back up towards the 70s closer to 2010. Since then the stock levels slowly increase each month and now are at a steady positive increase and I believe that it will continue to increase.Also VF Corp is associated with various clothing and apparel companies and regardless of ho w hard the economy might decline, people will still go out and bargain for clothes. VF Corp is also associated with a number of big name brands such(prenominal) as The North Face, Lee, Vans, Timberland, Nautica, Wrangler, Majestic, Jansport, and many other brands. These different brands are very popular these days and their deals are always going up so the overall stocks for VF Corp will continue in a positive slope. pic Part 4 Current Events The first article discusses how VF Corp is purchasing VF Arvind Brands mystical Limited.This company is responsible for marketing VF Corps brands throughout India. This is helpful for VF Corp because it can market its own brands and spread throughout Asia as well. This would allow VF Corp to not only have the final say on how exactly it markets its products but to also choose the locations that they want the products to be marketed at. general this purchase will greatly benefit VF Corp right now and in the future as well. The second articl e discusses how VF Corp is set to buy the brand Timberland. By doing so not only is VF Corp helping increase its profits but Timberlands as well.Timberland is a phone lined company that primarily sells boots. This would greatly increase VF Corps variety in terms of outdoor wear. By purchasing Timberland VF Corp will also be able to expand oversees as the article stated. Since most of the sales from Timberland occur in China, this would help VF Corp market not only Timberland but many of their other name brands. This purchase will definitely have some very positive results in the future and if more purchases like this are made then VF Corp will increase its earning greatly. Part 5 RecommendationsBased on the information that Ive self-collected about this corporation I strongly suggest that investors should move fast and buy stocks from this company. Using the current ratio I can see that the companys liquidity levels will be increasing in the years to come and since the economy is slowly recovering it is clear that VF Corp is going to do well in terms of stock sales. The difference between the current ratio of 2010 and 2009 is 0. 14. though this might not seem like a large enough of a number to make a huge difference, in reality it does. The profit margin between the two years has also increased by 1. %. solely of this information tells me that VF Corp is a company that you should invest in because the company is only going on a positive direction. phrase 1 VF Corporation To Acquire Joint Venture in India Published November 2, 2011 GREENSBORO, N. C. , & BANGALORE, India(BUSINESS WIRE)Nov. 2, 2011 VF Corporation (NYSE VFC), a global leader in branded lifestyle apparel, directly announced that its subsidiary, VF Mauritius, has acquired full ownership of VF Arvind Brands Private Limited, a majority-owned joint venture between VF Mauritius and Arvind Limited formed in 2006 to market VF brands in India. Our business in India is strong, and now is the time to a ssume full ownership, say Eric C. Wiseman, Chairman, President and CEO of VF Corporation. Anchored by our Lee and Wrangler brands, the Indian market will provide a robust platform for future growth in the Asia-Pacific region. Aidan OMeara, President, VF Asia, noted VF is grateful for the contribution Arvind made to the development of a fast-growing and profitable business for our brands in India. VF and Arvind will continue to have a strong working relationship, now and in the future. OMeara added that he does not expect any stupor to jobs or changes in the day-to-day operations of the business in India. The new name of the wholly owned business in India has not yet been announced. clause 2 VF Corporation to Buy Timberland BY MICHAEL J. DE LA MERCED The VF Corporation agreed on Monday to buy the Timberland Company, the boot maker, for about $2 zillion in cash, paying a big premium in an effort to bolster its outdoor clothing offerings. VF, which already owns lines like Wrangler and 7 for All Mankind, will add Timberland to a stable of outdoor brands like the North Face and Eastpak.Eric C. Wiseman, VFs chairman and chief executive, described the Timberland make love on Monday as a transformative acquisition that will add footwear to his companys fastest-growing unit. The outdoor and action sports business reported a 14 percent gain in revenue last year, to $3. 2 billion. We are confident in our ability to take big brands and make them bigger, he said during an investor conference call. Still, VF is paying up Under the terms of the deal, it will pay $43 a share, a more than 40 percent premium to Timberlands Friday closing price.Founded in Abington, Mass. , in 1952 by the Swartz family, Timberland became synonymous with American work garments and outdoor clothing, particularly with its hard-wearing boots. But the company has faced travel materials costs, with its operating margins falling to just 9 percent last year. It reported a 30 percent drop in first-q uarter profits this year. VF executives appeared confident that it could embrace profits by improving Timberlands business performance, primarily by folding it into the apparel giants global platform and slipperiness costs.On an investor call with analysts, VFs chief financial officer, Bob Shearer, said his company planned to raise its new acquisitions operating margin to 15 percent, in line with the rest of the conglomerates brands. In Timberland, VF also sees an opportunity to expand its presence overseas. Though Timberlands popularity in the unite States surged years ago, the brand remains popular in high-growth markets like China. The company also has a foothold in Japan, where VF is still building out its presence. VF executives expect to reap benefits from the Timberland deal soon after its closing, which is expected in the third quarter this year.Timberland is expected to begin adding to VFs earnings by 45 cents a share this year and 90 cents next year, excluding acquisiti on costs. VF plans to keep Timberland based in Stratham, N. H. Members of the Swartz family have agreed to support the deal. The Timberland sale appeared to stoke hopes that other outdoor apparel makers could soon go on the block as well. Among the big gainers was Wolverine World Wide, another maker of furrowed work boots, whose shares jumped about 5. 1 percent to $39. 08. Columbia Sportswear, another purveyor of activewear, rose 1. 7 percent to $59. 43.Shares of VF also rose, gaining 10 percent on Monday to $101. 01. Usually, an acquirers shares fall after a deal is announced, as shareholders worry about the transaction being overpriced. Shares in Timberland soared 44 percent to $43. 20. Analysts praised the deal, citing VFs story of integrating brands into its business platform. We regard Timberland as a high-quality brand that has been operationally challenged for a number of years, analysts at Sterne Agee wrote in a research note on Monday. We believe that VF has exhibited a s trong track record and the capabilities to rectify many of the historical problems.