V.F. Corporation (VFC) Surges 3.73% on Luxury Rally, 3-Day Gain Hits 4.99% Amid Valuation Disconnect

V.F. Corporation (VFC) surged 3.73% in intraday trading on September 8, 2025, marking its highest level since September 2025. The stock has climbed 4.99% over the past three days, driven by renewed investor optimism amid a broader rebound in the luxury apparel sector. This rally follows a period of volatility, with shares rebounding 27% in the prior month despite a 15% decline over the past year.

Analysts highlight a valuation disconnect as a key factor. VFC trades at a price-to-sales (P/S) ratio of 0.6x, slightly below the U.S. luxury industry median of 0.7x. However, the company’s revenue has contracted by 2.3% year-over-year, with a three-year cumulative decline of 20%. Projected annual revenue growth of 2.6% over the next three years lags significantly behind the industry’s 6.6% forecast, raising concerns about the sustainability of its current valuation.

The upcoming ex-dividend event on September 10, 2025, is expected to temporarily pressure the stock. A $0.09 quarterly dividend, yielding 2.40% annually, will be distributed on September 18. While the payout offers stability for income-focused investors, the ex-dividend adjustment may trigger a 0.60% price drop on the event date. This timing could influence short-term trading activity, particularly as institutional investors rebalance holdings ahead of the dividend distribution.

Despite these near-term dynamics, risks remain under the surface. The analysis notes undisclosed challenges, including a “significant” warning sign for VFC. While specifics are not provided, potential headwinds could include supply chain disruptions, shifting consumer demand in luxury and outdoor apparel segments, or operational inefficiencies. These factors, combined with the company’s weak revenue trajectory, underscore the need for caution among investors assessing long-term prospects.

Investors must weigh VFC’s modest valuation against its growth limitations and operational risks. While the stock’s P/S ratio suggests a potential bargain, the projected 2.6% annual revenue growth may fail to justify its current price. For now, the market appears to be betting on a near-term stabilization, but sustained recovery will depend on VFC’s ability to address underlying challenges and align with industry trends.