Accent Group’s Vans’ sales performance till March end was inline with guidance, observes Citi, but likely below market expectations.
VF Corp has guided towards 7-9% revenue growth for Vans in FY22 versus the drop of -16% in FY21 and expects Vans to recover the revenue lost during covid.
Citi sees the return to growth for Vans to be positive for the group given the brand contributes circa 9% of Accent’s group sales, according to the broker’s calculations.
Neutral rating with a target price of $3.10.
Target price is $3.10.Current Price is $2.71. Difference: $0.39 – (brackets indicate current price is over target). If AX1 meets the Citi target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).