They’re primed for re-opening rebounds

Article Excerpt

On May 22, 2019, apparel maker VF Corp. spun off its Lee and Wrangler jeans business into a separately traded company called Kontoor Brands. Investors received one share in Kontoor for every seven VF shares they held. The COVID-19 lockdowns hurt both stocks, but they have rebounded with the reopening of retail stores. Even so, VF is down 7% since the split, while Kontoor has soared 105%. We continue to like the long-terms prospects of both stocks, particularly as the reopening of offices and schools continue to spur demand for new clothes. VF CORP. $77 is a buy. The company (New York symbol VFC; Consumer sector; Shares outstanding: 392.8 million; Market cap: $30.2 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. In December 2020, VF announced its acquisition of streetwear brand Supreme for $2.2 billion. Supreme generates more…