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




  


 


   

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