V.F. Corporation ( VFC Quick Quote VFC - Free Report) grew more than 11% in the trading session on Oct 9, following the announcement to buy Supreme. Notably, the company inked a $2.1 billion cash deal to buy the privately-owned streetwear brand – Supreme. The brand mostly sells apparel, accessories and footwear through the online platform. Earlier, V.F. Corp has collaborated with Supreme for its brands such as The North Face, Vans and Timberland on various occasions. The deal is anticipated to be completed by 2020 and is currently subjected to customary closing conditions. This acquisition is estimated to slightly contribute to the company’s top and bottom lines in fiscal 2021. The company expects synergies of at least $500 million in revenues and 20 cents in adjusted earnings during fiscal 2022, from this deal. This move is in sync with V.F. Corp’s digital business model transformation and likely to add shareholder value. Notably, the company is poised to gain from Supreme’s strong follower base in the younger generation, even when consumers are moving away from apparel to essential spending. Moreover, the company’s increased focus on international and direct-to-consumer (DTC) expansion as part of its 2024 strategy provides V.F. Corp an opportunity to attain $1 billion in sales. Speaking of the 2024 strategy, the plan aims at transitioning to a consumer-minded and retail-centric business in a hyper-digital way. The company is making efforts to uplift direct channels by prioritizing digital. The strategy targets generating revenue growth of 7-8% at a five-year CAGR, through 2024. This growth will be primarily driven by its largest brands — The Vans, The North Face, Timberland and Dickies. Further, the company expects revenue growth through the period to be driven by strong contributions from the International and Direct-to-Consumer business platforms. Overall, V.F. Corp has displayed a robust show in the past three months. Shares of ths Zacks Rank #2 (Buy) company have gained 21.6% in the past three months, outperforming the industry’s growth of 7.1%. 3 More Apparel Stocks to Watch Kontoor Brands, Inc. ( KTB Quick Quote KTB - Free Report) has a long-term earnings growth rate of 4%. The company currently flaunts a Zacks Rank #1 (Strong Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here Crocs ( CROX Quick Quote CROX - Free Report) , another Zacks Rank #1 stock, has outperformed the Zacks Consensus Estimate by 191.7%, on average, in the trailing four quarters. Gildan Activewear, Inc. ( GIL Quick Quote GIL - Free Report) has a long-term earnings growth rate of 5.4% and a Zacks Rank #2, at present. Biggest Tech Breakthrough in a Generation
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