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VF Corp shares plummet 7% as earnings and revenue miss estimates

EditorRachael Rajan
Published 05/23/2024, 04:28 AM
© Reuters.
VFC
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DENVER - VF Corporation (NYSE: NYSE:VFC), a global leader in branded lifestyle apparel, footwear, and accessories, reported its fourth quarter financial results, which fell short of Wall Street expectations. VFC shares fell 7.7% in aftermarket trading following the report.

The company posted an adjusted earnings per share (EPS) loss of -$0.32, significantly underperforming the analyst consensus of $0.02. Revenue also disappointed, coming in at $2.37 billion against an expected $2.42 billion.

In the fourth quarter, VF Corp faced a 13% decline in revenue compared to the same period last year, with notable declines across its major brands. Vans® experienced a steep 26% drop, while The North Face® saw a 5% decrease. The company's efforts to right-size inventories and a challenging retail environment contributed to the weaker performance.

VF Corp's management acknowledged the challenges and underscored their commitment to the Reinvent transformation program aimed at revitalizing the company's core operations and reducing costs.

Bracken Darrell, President and CEO, commented on the quarter's performance, stating, "In Q4, we made progress advancing our Reinvent transformation program. We closed the fiscal year with further inventory reductions helping us deliver $1 billion in operating cash flow and over $800 million in free cash flow, exceeding our guidance."

Despite the setbacks, VF Corp remains focused on its broader turnaround plans, which include driving momentum on key priorities such as fixing the Americas, turning around Vans®, reducing costs, and paying down debt. The company is also progressing on actions resulting from its strategic portfolio review and rebuilding its leadership team, with a recent announcement of a new CFO appointment.

For the upcoming fiscal year, VF Corp expects free cash flow plus the benefit of non-core asset sales to generate approximately $600 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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