Costa Mesa-based Vans Inc.’s parent, VF Corp. (NYSE: VFC), took a hit in its fiscal fourth quarter as a result of COVID-19, missing analysts’ top and bottom line projections.
The Denver company said its revenue for the period ended March 28 fell 10%, excluding the impact of exchange rates, to $2.1 billion, missing the $2.3 billion target analysts set for the multi-brand portfolio owner. Adjusted earnings were down 69% to $39.5 million. Analysts on average expected earnings of $51.4 million.
VF also owns The North Face, Timberland and Dickies.
Vans sales were down 6% in the March quarter, but still up for the full year by 11%.
“Through the first 10 months of fiscal 2020 our business delivered results above our stated long-term growth objectives. Then the world changed for all of us,” VF Chair, President and CEO Steve Rendle said in a statement.
VF ended its full year with adjusted earnings up 7% in constant currency to $689.4 million on revenue of $10.5 billion, reflecting a 4% increase excluding the impact of exchange rates.
Investors sent the company’s shares down 4.6% in midday trading Friday on the financial update to a market value of about $21 billion.
All VF stores in the Asia-Pacific region are now open with European stores preparing for reopenings in stages. North America is to follow as local governments lift restrictions. VF said most of its stores should be open by the middle of this year.
The company scrapped any guidance for the full year and said current quarter revenue is likely to come in down more than 50%.
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