VF Corp. Reports Mixed Results For The Third Quarter

VF Corp. (NYSE:VFC), founded in 1899, is one of the leading apparel and footwear maker, with a brand presence in almost all major stores across the world. It initially started operating as a glove and mitten manufacturing company. The name “VF”, which stands for Vanity Fair Mills, came in the early 19th century. VF is the owner of several brands including Vans, The North Face, and Timberland.

Like other retailers, VFC’s revenue also took a hit from store closures due to the Covid-19 crisis. The Denver, Colorado-based company mostly relied on e-commerce sales during the pandemic. VFC stock lost nearly 14 percent of its value during 2020.

The company on Wednesday announced mixed financial results for the third quarter. VFC reported adjusted earnings of 93 cents per share, just ahead of analysts’ average estimate of 90 cents per share. Revenue for the quarter came in at $2.97 billion, as compared to $3.16 billion in the year-ago quarter, and below the consensus forecast of $3 billion.

The company’s digital revenue climbed 53 percent during the quarter but that could not make up for the fragile in-store sales due to the pandemic. Revenue at Vans brand slipped 6 percent in the quarter, while revenue at The North Face stayed relatively flat. Comparatively, revenue at the work segment rose 8 percent, while the Dickies brand sales rose 9 percent during the quarter.

Looking forward, VFC expects to report revenue in between $9.1 billion to $9.2 billion for the full year, slightly up from its previous outlook of at least $9 billion. Moreover, the company expects an adjusted profit of around $1.30 per share for the year.

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VFC shares rose marginally on Thursday morning after declining more than 7 percent in the previous trading session following the weak quarterly performance.