Lower costs should lift these two

Article Excerpt

Apparel maker VF has dropped about 80% since its spun off its jeanswear business (Kontoor) in May 2019, while the new firm has gained over 65%. We still like VF, as it is now aggressively cutting its costs. That should lift its profits and stock price. A new restructuring plan should also push Kontoor’s shares higher. VF CORP. $14 is a buy, but only for aggressive investors. The company (New York symbol VFC; Consumer sector; Shares outstanding: 389.0 million; Market cap: $5.4 billion; Dividend yield: 2.6%; Takeover Target Rating: Medium; www.vfc.com) is one of the world’s largest apparel suppliers and a leader in the outdoor, sportswear, and workwear markets. Its main brands include Vans, The North Face, Timberland and Dickies. On May 22, 2019, VF spun off its Lee and Wrangler jeans business as a separately traded company called Kontoor Brands (see right). Investors received one share in Kontoor for every seven VF shares they held. VF shares are down about 80% since the spinoff, mainly because…