This Sportswear Maker Stock Lost 36% In 2025 But Just Got An Upgrade From Baird: Retail Is Not Excited Yet

Baird raised its price target to $20 from $14, adding that while earnings for active lifestyle brands have been hit by tariffs in 2025, higher costs and sales risks now appear well embedded in the shares post the second quarter reports.

VF Corp. (VFC) shares jumped 3% in premarket trading on Tuesday after brokerage Baird upgraded the sportswear maker to ‘Outperform’ from ‘Neutral,’ citing that its improving financials, cost savings, and high operating leverage make it compelling in a favorable 2026 macro scenario.

Baird also raised its price target to $20 from $14, according to TheFly. The firm added that while earnings for active lifestyle brands have been hit by tariffs in 2025, higher costs and sales risks now appear well embedded in the shares post the second quarter reports.

Retail sentiment on VF Corp dipped to ‘bearish’ from ‘neutral’ territory, with message volumes at ‘low’ levels, according to data from Stocktwits.

Baird said that it views back-to-school spending as encouraging, and sees potentially better macro conditions and investor sentiment into 2026. In July, CEO Bracken Darrell noted that new products were on the way, and recent supply chain improvements are helping the firm bring them to market faster.

VF Corp’s CFO Paul Vogel had then said the company expects the incremental annualized tariff impact to be between $100 million and $120 million, down from its prior estimate of $150 million, as it battles U.S. President Donald Trump’s tariffs on global trading partners.

In 2023, the sportswear maker named Darrell as its CEO to navigate sluggish demand for VF Corp’s Vans sneakers and Timberland boots. VF Corp stock has declined by over 36% this year and lost 26% in the last 12 months.

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