Shares of V.F. Corp. (VFC) fell 85% from their pre-pandemic levels. But the producer of apparel and footwear under the North Face, Vans, Timberland, Supreme, and Dickies brands is taking several steps that should help it turn things around, claims Tom Hayes, editor of Hedge Fund Tips.

Think about this: Bracken Darrell is the new CEO. He took over Logitech in 2013 when it was down 82%. Then the stock went from $5 to $133 over next eight years (a 26-Bagger). A $5M investment would become $133M. He is a turnaround specialist.

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Darrell just booked a “kitchen sink” quarter. The idea? Take all the losses at once, release all the bad news, cut the dividend, and lower expectations so that everything moving forward is GOOD news. The company actually beat on the top-line and came within shooting distance on the bottom line, while cutting the dividend 70% and pulling guidance.

As for results, North Face sales were recently up 19% year-over-year. International sales overall were up 10%, with China up 8%. Vans sales dropped 21%, but the company has a new Vans president. VFC is also using its successful EU platform for US business. Plus, it’s deleveraging by cutting costs and selling its “packs” business (Eastpak, JanSport, Kipling).

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