Clothing and footwear maker VF Corp has today forecast full-year revenue below expectations on weak demand for its North Face clothing range apparel and Vans runners.
The news sent its shares down 9%.
The company is completing spinning off its less profitable jeans business, including Lee and Wrangler brands, this week to better focus on high-margin brands such as Vans and North Face.
VF Corp forecast 2020 revenue in the range of $11.7 billion to $11.8 billion. Analysts on average had forecast $14.6 billion, according to IBES data from Refinitiv.
Sales growth in the active segment, which includes Vans, is expected to slowdown as the company forecast 6% to 7% growth in full-year sales compared with a 16% growth in 2019.
The company also forecast 4% to 5% sales growth in outdoor segment compared with sales growth of 9% in 2019.
The company said its net income fell to $128.8m, or 32 cents per share, in the fourth quarter ended March 30, from $252.8m, or 63 cents per share, a year earlier.
Excluding items, the company earned $0.60 cents per share, beating analysts' estimate of $0.58.
Total revenue rose 5.5% to $3.21 billion, edging past analysts' estimate of $3.20 billion, according to IBES data from Refinitiv.
