Baird upgrades VF Corp, Canada Goose, Rocky Brands on improved retail outlook.

Baird upgrades VF Corp, Canada Goose, and Rocky Brands due to a better setup to 2026. Encouraging back-to-school spending and an improved macro environment will fuel performance. Tariffs had negatively impacted the retail sector in the first half of 2025, but the situation has improved. The upgrades reflect the positive outlook for these companies.

July 02, 2025

In a significant move, Baird Equity Research has upgraded VF Corp (VFC), Canada Goose (GOOS), and Rocky Brands (RCKY) to "Outperform," reflecting a positive outlook for these companies heading into 2026. The upgrades come amidst encouraging back-to-school spending and an improved macroeconomic environment, which are expected to fuel performance. The upgrades also reflect the companies' ability to navigate the challenges posed by tariffs in the first half of 2025.

VF Corp (VFC)

VF Corp, a lifestyle clothing conglomerate, saw its shares jump 5.4% in the morning session after Baird upgraded the stock to 'Outperform' from 'Neutral' and raised its price target to $20 from $14 [1]. The upgrade is based on Baird's view that VF Corp's Vans brand has potential for recovery as financial headwinds subside. Additionally, the firm pointed to "more interesting product and social media activity" that could boost consumer interest. Ongoing cost reductions and gradual debt reduction were also highlighted as positive factors. Analysts noted that the stock's significant 53% decline from its 52-week highs reflects "broadly negative sentiment," which may limit further downside risk while creating "substantial upside value for the equity."

Canada Goose (GOOS)

Canada Goose (GOOS) has been upgraded to "Outperform" by Baird Equity Research due to a positive outlook and waning tariff impacts [2]. Analysts project an average price target of $10.26, with GuruFocus estimating a potential upside to $15.20, reflecting a 23.38% increase from the current price. The upgrade was driven by several key factors, including strong back-to-school season performance, improved brand momentum, and easier upcoming comparisons into the fall.

Rocky Brands (RCKY)

Rocky Brands (RCKY) was upgraded from Neutral to Outperform by Baird Equity Research, with a price target raised to $40.00 from $30.00 [3]. The stock, currently trading at a P/E ratio of 11x, has shown strong momentum with a 32% return over the past six months. The upgrade follows Rocky Brands’ impressive second-quarter performance, which showed 7.5% revenue growth and a 51% increase in EBIT. The company maintains solid financial health with a current ratio of 2.76x and an Altman Z-Score of 3.73, indicating strong financial stability. Despite facing approximately $11 million in gross tariff headwinds expected in the second half of 2025, Rocky Brands has maintained its guidance, which Baird suggests could prove conservative.

The upgrades signal optimism for these companies' future, reflecting their ability to navigate challenges and capitalize on favorable conditions. Investors should closely monitor these companies' performance as they move into the second half of 2025 and beyond.

References:

[1] https://finance.yahoo.com/news/why-vf-corp-vfc-shares-155109093.html
[2] https://menafn.com/1109977491/This-Sportswear-Maker-Stock-Lost-36-In-2025-But-Just-Got-An-Upgrade-From-Baird-Retail-Is-Not-Excited-Yet
[3] https://www.investing.com/news/analyst-ratings/rocky-brands-stock-rating-upgraded-by-baird-on-strong-brand-performance-93CH-4210236