VF Corporation Provides Update on Global Business Impact of COVID-19
March 16 2020 - 6:55AM
Business Wire
In response to the global COVID-19 coronavirus outbreak, VF
Corporation (NYSE: VFC) today announced the temporary closure of
all owned retail stores across North America, effective March 16
through April 5. All retail employees at these locations will
continue to receive full pay and benefits during the temporary
closure period.
In addition to its retail fleet, VF has closed its corporate and
brand offices in North America until April 5 and is enabling all
office employees to work remotely. The temporary closure of both
offices and retail locations may be extended depending on the
overall state of the COVID-19 situation.
“During this time of uncertainty and concern, our steadfast
commitment is to do what’s right for our people, consumers and our
global communities,” said Steve Rendle, VF’s Chairman, President
and CEO. “The decision to close our retail stores, as well as our
corporate and brand offices in North America, is the responsible
thing to do to help mitigate the spread of the virus through social
distancing. We will continue to monitor this situation closely and
follow the guidance of global health professionals to ensure we’re
doing our part to flatten the curve of newly confirmed cases.”
VF’s actions in North America are consistent with similar
operational decisions made in its EMEA and Asia Pacific regions. In
mainland Europe, VF has closed all offices and retail store
locations until further notice, and its locations in the United
Kingdom are currently operating on reduced hours.
In the Asia Pacific region, which was first impacted by the
virus, VF initially closed the majority of its offices and retail
locations. Currently, the company’s offices in Greater China are
open and approximately 90 percent of its retail store locations are
now open for business. While retail store traffic has steadily
improved over the past month, it remains down significantly
compared with the prior year. VF’s offices and retail locations in
South Korea, Japan, Hong Kong and Taiwan remain open, but office
employees are working remotely, and retail store locations are
operating on reduced hours in some cases.
Consistent with VF’s long-term strategy, the company’s digital
platform remains a high priority through which its brands stay
connected with consumer communities while providing experiential
content and service. In accordance with local government guidelines
and in consultation with the guidance of global health
professionals, VF has implemented measures to ensure the health,
safety and well-being of associates employed in its distribution
and fulfillment centers around the world. These facilities remain
operational in order to support digital consumer engagement with
its brands and to service retail partners as needed.
VF’s supply chain operations have experienced limited disruption
to date as a result of the COVID-19 situation. Ongoing
diversification efforts, such as re-directing manufacturing and
materials sourcing, are underway in an attempt to mitigate
potential future disruption. While it is not possible to gauge the
full impact to VF’s supply chain at this time, VF continues to
believe its global supply chain represents a key competitive
advantage during periods of uncertainty and market volatility.
As stated in VF’s news release dated February 7, 2020, the
coronavirus outbreak was not contemplated at the time VF provided
its adjusted fiscal 2020 outlook on January 23, 2020. VF will
provide an update as to the operational and financial impacts of
the coronavirus during the company’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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version on businesswire.com: https://www.businesswire.com/news/home/20200316005255/en/
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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