JPMorgan Downgrades VF Corp As Margin Recovery Delays into 2026
JPMorgan downgraded VF Corp, parent of Vans, from overweight to neutral, warning that its margin recovery will lag until the second half of fiscal 2026 due to sustained cost pressures and soft wholesale orders. The bank also trimmed its FY26 EPS forecast and set a revised $38 price target.
1. Analyst Rating Change
JPMorgan moved VF Corp’s rating from overweight to neutral after assessing that recent operational headwinds outweigh near-term upside. This shift reflects a more cautious stance toward the apparel and footwear maker’s earnings potential.
2. Margin Recovery Outlook
Analysts flagged that gross margins at Vans parent VF Corp will remain under pressure well into the second half of fiscal 2026 as lingering supply-chain costs and weaker wholesale orders delay improvement. Management’s cost-cutting initiatives were deemed insufficient to offset these challenges in the near term.
3. Forecast and Valuation Adjustments
JPMorgan reduced its fiscal 2026 EPS projection for VF Corp, reflecting a more subdued revenue and margin trajectory. The firm also revised its price target to $38, indicating limited upside from current levels given the extended recovery timeline.