VFC

Three years of Bracken Darrell's turnaround have left a leaner VF that nobody is paying attention to. $2.2B of debt is retired, inventory is the leanest in the peer group at 113.7 days, and a premium 54.8% gross margin converts to just 6.3% operating margin. Closing that gap is the asset: each point of operating margin is worth ~$96M of EBIT. Bull case: gross margin to 59-60% on mix and sourcing, 13% terminal EBIT margin, $35. You don't need VF to sell more, you need it to keep more of every dollar.

Vans is still shrinking (-9% cc in Q1 FY27) and is roughly 27% of revenue. Bear case: gross margin compresses to 53%, SG&A only reaches 46% of revenue by FY2030, terminal EBIT margin 7% on 1.8% revenue growth, for $18. DSO of 53.5 days is the worst in the peer set, and ~$482M of payables sits in supply-chain finance, a working-capital risk. Even so, the bear case still carried 26% upside to $14.46 at publication.