VF Corp. (NYSE: VFC), the parent to Costa Mesa-based Vans Inc., said Monday it was drawing on a credit line to pad its cash on hand and nixing its fiscal year 2020 forecast as a result of uncertainties brought on by the novel coronavirus pandemic.
Vans said last week it was shuttering its brick-and-mortar retail fleet in the U.S. and Canada through April 5. VF, headquartered in Denver, also owns The North Face, Timberland and Dickies.
VF said it was drawing on $1 billion from its $2.25 billion senior unsecured revolving credit facility in what it called an “abundance of caution.”
The apparel and footwear firm also said uncertainty caused by the pandemic has it now scrapping its adjusted fiscal 2020 outlook released earlier this year. It did not issue revised guidance.
VF’s stock was off more than 10% in trading Monday to a market cap of $18.6 billion.
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