In a bid to enhance distribution services and better serve consumers in the Northeastern United States, V.F. Corporation VFC plans to establish a new distribution center in Jonestown, PA. The company has been witnessing significant growth in its direct-to-consumer business, which provides an opportunity to expand distribution operations to better serve its customers.

Notably, revenues for the company’s direct-to-consumer business increased 17% in third-quarter 2017. Notably, enriching direct-to-consumer and digital businesses are crucial parts of the company’s five-year strategic growth plan (2021 growth strategy). The plan focuses on rapidly responding to the changing marketplace while targeting fantastic shareholder returns.

Coming back to the distribution center, it will come up in a 500,000 square feet facility in Jonestown , which is expected to be fully operational in early 2019. The facility will carry out distribution of products for the Vans, The North Face and the Timberland brands. The company expects the lease to begin in July 2018.

The new distribution center will attract investment up to $52 million and add more than 175 full-time jobs in the region,in the next three years.It expects to start hiring employees for the new facility in mid-2018. The company’s endeavor is likely to benefit the Berks, Lebanon and Dauphin counties both economically and through improved jobs. The news did not have any major impact on V.F. Corp’s share price. However, this Zacks Rank #2 (Buy) stock gained 35.9% in the past six months, outperforming industry’s growth of 18.4%.

 

Looking for More Promising Bets? Check These

Some other stocks worth considering from the same space are G-III Apparel Group LTD GIII, Tailored Brands Inc. TLRD and Crocs Inc. CROX. While G-III Apparel and Tailored Brands flaunt a Zacks Rank #1 (Strong Buy), Crocs carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

G-III Apparel delivered an average positive earnings surprise of 6% for the trailing four quarters. It has a long-term earnings growth rate of 15%.

Tailored Brands’s pulled off an average positive earnings surprise of 7.7% for the trailing four quarters. It has a long-term earnings growth rate of 16.5%.

Crocs delivered a positive average earnings surprise of 108.9%. Also, it has a long-term earnings growth rate of 15%.

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V.F. Corporation (VFC): Free Stock Analysis Report
 
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