Learn from V.F. Corporation on how to destroy shareholder wealth
V.F. Corporation ( VFC ) owns many iconic brands (Exhibit 1), but the stock has struggled over the past year, losing nearly 60% of its value, while its competitor PVH Corporation ( PVH ) has gained 28%. V.F. Corporation has spent much money on buying back its shares. Exhibit 1: Source: V.F. Corp. The company has spent $6.1 billion on share repurchases and reduced its share count by 51 million over the past decade (Exhibit 2). Based on these metrics, the average repurchase price is an astounding $119 (Exhibit 3). The company has issued over $800 million in shares over the past decade. The company spent billions buying back its shares when trading well above $50 in 2016, 2017, and 2018. The stock is trading at $18 on August 8, 2023. Exhibit 2: Source: Seeking Alpha, Author Compilation Exhibit 3: Source: Seeking Alpha, Author Calculations