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VF Corporation Falls After Cutting Its Revenue Outlook

VF Corp. owns Vans, The North Face, and Supreme, among other brands. Courtesy Shutterstock
VF Corp. slumped after cutting its revenue outlook for the year amid a slowdown in its activewear brands and international sales. (Shutterstock)

VF Corp. slumped after cutting its revenue outlook for the year amid a slowdown in its activewear brands and international sales.

The maker of Vans and The North Face apparel now expects revenue of about $11.85 billion for the fiscal year ending around April 1, down from a prior view of about $12 billion. Adjusted gross margin is now projected to be at least 55 percent, down 1 percentage point from the company’s October forecast.

The shortfall appears to be in part due to VF’s Active division, along with slowdowns in international revenue, direct-to-consumer and the digital business. In October, VF said Active sales in China were hurt by weaker digital traffic for non-domestic brands. On Friday, the company lowered its outlook for revenue growth across all regions outside the US, with the biggest cuts coming in Asia-Pacific.

Shares of VF fell 5.3 percent in premarket trading at 8:56 a.m. New York time. The stock had fallen 15 percent in the previous 12 months, among the worst performers in the S&P 500 Consumer Discretionary Index.

Learn more:

Vans Owner Tumbles as Supply-Chain Woes Hurt Results

VF Corp. slumped after the owner of Vans sneakers and the Supreme streetwear brand reported earnings that fell short of Wall Street’s expectations, citing port congestion and ongoing coronavirus outbreaks that have constrained suppliers.

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