Citi Endorses V.F. Corp. and Wolverine (VFC, WWW)

Citigroup

has released a report about European demand’s impact on EPS for Footwear/Apparel companies. Citi ( C) surveyed Footwear/ Apparel companies in early June on a series of questions regarding European demand, inventory execution, potential order cancellations and markdown policies. The report has deduced that EPS is likely to be less negatively impacted from recent events in Europe, since European retailers do not markdown their products at the end of selling seasons. Also, wholesalers in Europe have generally more leverage due to the fragmented nature of the European market. However, nearly all European divisions purchase goods in USD and this may hurt EPS numbers. The report stated that V.F. Corporation

stock looks attractive due to its shorter than average lead times. It also favored Wolverine World Wide Inc.

.