Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CONSUMER CYCLICALS
- US retailer VF Corp’s EUR bonds are amongst the best performers in BBG’s €IG Corp Index over the past two weeks.
- As flagged at the time, VF Corp, which owns brands such as The North Face, Timberland and Vans, saw credit spreads blow out in December on the news of a cyber-attack, theft of consumer data and delays in orders during the busy Christmas period.
- The widening has reversed in the new year – we note an SEC filing made yesterday indicating that VF Corp does not expect a material impact on its financial condition (in line with earlier management commentary).
- Analysts have noted that their USD spreads seemingly already price in a downgrade to HY and looking at recent performance, we see the same in their EUR lines (see chart below, comps are global EUR-denominated Apparel & Textile bonds).
- VF Corp (Baa3[N]/BBB[N]) was downgraded in June by S&P and in Nov by Moody’s with the latter citing challenges at Vans and reliance on The North Face. Despite an expected improvement in Debt/EBITDA from 4.8x at FY24 to 3.7x at FY25, the reliance on an uncertain turnaround strategy and asset sales to reduce debt weighed on the outlook.
- Q3 earnings come on 06 February.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok