VF Corporation Provides Update on Business Impact of Coronavirus in China
February 07 2020 - 6:55AM
Business Wire
In light of the coronavirus outbreak, VF Corporation (NYSE:VFC)
is working in accordance with local government guidelines to ensure
the health, safety and overall well-being of the company’s
associates and partners in the communities where they live and
work.
“The safety and well-being of our associates and partners in
China is our highest priority. Our thoughts are with those people
affected by the coronavirus,” said Steve Rendle, VF’s Chairman,
President and CEO. “While the coronavirus will impact our financial
results in the Asia Pacific region in the near term, VF’s growth
opportunity in China and across the Asia Pacific region is
significant and the fundamentals of our business are strong. VF is
well positioned to navigate the impact of the coronavirus situation
given the diversity of our business and operating model in other
key geographies.”
At this time, about 60 percent of VF’s owned and partner stores
in China have been temporarily closed due to coronavirus mitigation
efforts. Stores currently open have experienced significant
declines in retail traffic.
In Fiscal 2019, the Asia Pacific region and mainland China
represented 12 percent and 6 percent, respectively, of total VF
revenue. And, while it is not possible to gauge the impact to our
supply chain at this point, approximately 16 percent of VF’s total
cost of goods sold is sourced directly from mainland China, of
which 7 percent is bound for the US market.
The coronavirus situation in China was not contemplated at the
time VF provided its adjusted fiscal 2020 outlook on January 23,
2020. We will provide an update as to the operational and financial
impacts of the coronavirus during VF’s fourth quarter fiscal 2020
conference call in May 2020.
About VF
Founded in 1899, VF Corporation is one of the world’s largest
apparel, footwear and accessories companies connecting people to
the lifestyles, activities and experiences they cherish most
through a family of iconic outdoor, active and workwear brands
including Vans®, The North Face®, Timberland® and Dickies®. Our
purpose is to power movements of sustainable and active lifestyles
for the betterment of people and our planet. We connect this
purpose with a relentless drive to succeed to create value for all
stakeholders and use our company as a force for good. For more
information, please visit vfc.com.
Forward-looking Statements
Certain statements included in this release are "forward-looking
statements" within the meaning of the federal securities laws.
Forward-looking statements are made based on our expectations and
beliefs concerning future events impacting VF and therefore involve
several risks and uncertainties. You can identify these statements
by the fact that they use words such as “will,” “anticipate,”
“estimate,” “expect,” “should,” and “may” and other words and terms
of similar meaning or use of future dates. We caution that
forward-looking statements are not guarantees and that actual
results could differ materially from those expressed or implied in
the forward-looking statements. Information on potential factors
that could affect VF's financial results is included from time to
time in VF's public reports filed with the Securities and Exchange
Commission, including VF's Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q, and Forms 8-K filed or furnished with the
SEC.
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VF Corporation Contacts: Joe
Alkire Vice President, Corporate Development, Investor Relations
and Treasury (720) 778-4051
Craig Hodges Vice President, Corporate Affairs (720)
778-4116
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