By
Bloomberg
Published
May 23, 2024
VF Corp., the owner of the Vans, Dickies and Timberland brands, reported a loss and a seventh consecutive quarter of falling sales, sending the shares down sharply in late trading.
The Denver-based apparel company reported a loss per share, excluding some items, of 32 cents, while investors had expected profit of 1 cent a share. Revenue in the company’s fiscal quarter ended March 30 declined across all of the company’s major brands, topped by a year-over-year drop of 26% at Vans. Adjusted gross margin, which is a measure of profitability, also missed market expectations.
VF Corp. shares fell 9.3% at 4:59 p.m in extended trading in New York. The stock has lost 34% so far this year through Wednesday’s close.
The company said it’s still working to turn around its Americas operations and Vans — including hiring a new president for the streetwear brand — while it cuts costs and pays down debt. Earlier this year, VF Corp. said it was undertaking a strategic review of its brands amid slumping sales. Prior to that, it laid off around 500 employees late last year.
“There has been little progress on the turnaround so far,” said David Swartz a senior equity analyst at Morningstar. “This is not a big surprise. It will take time.”
Separately, VF Corp. announced it hired Paul Vogel as chief financial officer. Vogel had previously held the same post at Spotify Technology SA