VF Corp. Down 10% After Guidance, Earnings
January 23 2020 - 1:08PM
Dow Jones News
By Michael Dabaie
VF Corp. (VFC) shares were down 10% to $84.97 with
heavier-than-average volume Thursday afternoon.
The apparel and footwear company said it now sees fiscal 2020
adjusted earnings per share from continuing operations to be about
$3.30, reflecting growth of about 15%. This is lower than the
previous expectation of adjusted EPS of $3.32 to $3.37.
The company said it now sees adjusted revenue from continuing
operations of about $11.75 billion, from the previous expectation
of about $11.8 billion.
VF said its outlook for 2020 is on an adjusted continuing
operations basis, which includes the occupational Work business the
company is reviewing.
Revenue for Outdoor is now expected to increase about 4%, down
from previous expectation of an increase in revenue of about 5%.
Revenue for Active is now expected to increase about 8%, compared
to the previous expectation of an increase about 8% to 9%.
Revenue for Work is now expected to increase about 1%, from
previous guidance of an increase of about 2% to 3%.
Excluding the occupational Work business, Work revenue is seen
up about 3%.
Earlier this week, VF said it is commencing a review of
strategic alternatives for the occupational portion of its Work
segment. The occupational portion consists of nine brands and
businesses: Red Kap, VF Solutions, Bulwark, Workrite, Walls, Terra,
Kodiak, Work Authority and Horace Small. The review doesn't include
the Dickies and Timberland PRO brands, the company said.
For the third quarter, VF said revenue from continuing
operations increased 5% to $3.4 billion. FactSet consensus was for
$3.4 billion.
The company said revenue was driven by VF's largest brands and
International and Direct-to-Consumer platforms.
Earnings per share from continuing operations were $1.13, up
from $1.02 in the prior-year period. Adjusted EPS from continuing
operations was $1.23.
In May, VF completed the spin-off of its Jeans business, which
included the Wrangler, Lee and Rock & Republic brands, as well
as the VF Outlet business, into independent, publicly traded
company Kontoor Brands Inc.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
January 23, 2020 12:53 ET (17:53 GMT)
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