North Face, Vans owner plummets on surprise earnings miss
Published: 06:41 23 May 2024 EDT
North Face and Vans owner VF Corp (NYSE:VFC, ETR:VFP) slumped in pre-market trading after unveiling worse-than-expected fourth quarter results on muted demand.
VF Corp (NYSE:VFC, ETR:VFP) unveiled an adjusted US$0.32 loss per share for the quarter on Thursday, against analysts’ expectations of a US$0.01 profit.
This was also down on a US$0.17 profit a year earlier, with revenue of US$2.37 billion, down 13%, also below market anticipations for US$2.41 billion.
Sales of Vans products fell 26% over the quarter, VF Corp (NYSE:VFC, ETR:VFP) noted, due to deliberate actions to right-size inventories.
Those of The North Face-branded goods slipped 5%, which VF attributed to wholesale weakness in the US as direct-to-consumer sales ticked up.
“We will continue to execute our broader turnaround plans [...] namely fixing the Americas, turning around Vans, reducing costs and paying down debt,” chief executive Bracken Darrell commented.
VF Corp said net debt stood at US$5.3 billion as of the year end, down $540 million from 2023.
Free cash flow of US$600 million was guided for 2025, against US$804 million in the year just gone.
Shares fell 15.3% to US$10.44 in pre-market trading.
