Yahoo Finance V.F. Corp. Expands: Introduces London's 6th Timberland Store
In an attempt to further its expansion in London, V.F. Corporation VFC announced the opening of a new Timberland Central London footwear store. Located at 158 Oxford Street, the new outlet marked Timberland’s sixth store in the city.
Spanning over 90 square meters, the store will house footwear and select accessories for men, women and children. Further, the store will have a separate Cobbler Station supervised by a Timberland expert, who will help customers with post-purchase requirements related to their footwear. Also, buyers can get their laces customized at this station.
Additionally, the company will introduce its SENSORFLEX and Boat Shoes brands to its Oxford store this year. This highlights V.F. Corp.’s focus on blending innovation and legacy with comfort. Further, with Oxford Street being one of the busiest and renowned shopping areas of London, Timberland is likely to benefit from its new location.
V.F. Corp. acquired Timberland in 2011 and the brand has been on an expansion track since then. Evidently, the company opened a Timberland store each in the U.K. and Ireland in Nov 2015. These additions are likely to enhance Timberland’s popularity among young customers, taking it closer to its goal of becoming a leading lifestyle brand.
Apart from this, V.F. Corp. is aggressively looking for opportunities to expand its international operations, particularly in the Asia Pacific, which is one of the fastest growing regions. Moreover, the company, which successfully achieved its target of a 38% contribution from international operations in 2014, expects to increase the figure to 43% by 2017. We believe that the company’s sustained focus on expanding its global operations will boost its top line in the long run, while reducing the risk of operating in a single market.
V.F. Corp. currently carries a Zacks Rank #4 (Sell). The company posted dismal top- and bottom-line results for the fourth quarter of 2015, battered by a soft consumer environment, lingering currency headwinds and unseasonably warm weather. Further, the company’s guidance for 2016 indicates that results will continue to bear the brunt of the strengthening U.S. dollar.
Nevertheless, V.F. Corp.’s focus on strategic acquisitions and expansion of global operations highlight its growth prospects. Moreover, its solid brand portfolio and opportunities with regard to distribution bode well.
Stocks to Consider
Some better-ranked stocks in the same industry include Delta Apparel Inc. DLA, with a Zacks Rank #1 (Strong Buy), Columbia Sportswear Company COLM and Michael Kors Holdings Limited KORS, both carrying a Zacks Rank #2 (Buy).
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V F CORP (VFC): Free Stock Analysis Report
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