VF Corporation, the S&P’s spoilt child

Wednesday, 16 February 2011

V.F. Corporation has been picked by Standard & Poor's Equity Research as its Focus Stock of the Week. The luxury group carries S&P's highest investment recommendation of 5-STARS, or Strong Buy, bringing fashion stocks to the negotiation arena.

"In a little more than five years, VFC has transformed itself into a company with a world class portfolio of apparel and footwear brands from the jeans and intimates company it was known as prior to 2005," said Marie Driscoll, Retail Equity Analyst at Standard & Poor's Equity Research. "With brands spanning The North Face, lucy, and Vans in its Outdoor & Action Sports Coalition, to Nautica in Sportswear, Wranglers in Jeanswear, and 7 For All Mankind in the Contemporary Coalition, VFC has broad access to consumers in 150 countries of various psychographic profiles."  Within the FashionUNited Top 100, the titles of the American conglomerate rose by 0.38%.

In the meanwhile, San Francisco-based clothing retailer, Gap Inc. has recently expanded its online shopping to eight additional European countries. Now consumers in Austria, Estonia, Finland, Luxembourg, Malta, Portugal, Slovakia, and Slovenia can shop all Gap Inc. brands including Banana Republic, Gap, Gap Kids, and babyGap from dedicated European ecommerce sites. The company will allow customers in these additional countries to immediately shop the English language version of the websites, pay in Pounds (GBP), and have their order shipped right to their doorstep in as little as 2 to 3 days for an introductory flat rate of GBP6, without any hidden charges. This announcement brings the total reach of the company’s ecommerce business to 18 European countries. However, market seemed not to had digested the expansion yet, as the stock retroceded by 0.26% Tuesday.

In short, Tuesday brought good spirits for the FashionUnited Top 100 Index, which climbed to 1265.19, breaking the spell that had draught the international fashion benchmark to negative numbers for the beginning of all past weeks.

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