VFC VF Corporation

By Dave Sebastian

VF Corp. said it expects to report lower sales for the year ended March 28 as it accounts for the fallout from the Covid-19 pandemic.

The owner of Vans, North Face, Timberland and Dickies brands said it expects to post revenue from continuing operations of $11.3 billion to $11.4 billion. The company last year posted sales of $13.85 billion. Analysts polled by FactSet are expecting $11.54 billion.

VF sees operating income from continuing operations of about $1 billion to $1.1 billion, or $1.4 billion to $1.5 billion on an adjusted basis. The company last year posted operating income of $1.68 billion.

VF said its stores in Asia-Pacific, Europe and the Americas were or are closed. Most of its Asia-Pacific stores have reopened, it said, though traffic remains significantly down compared with previous periods. The company said many of its distribution and fulfilment centers remain open and that it is still manufacturing and distributing globally but at a reduced capacity.

The company on Tuesday also said it is offering senior notes that it expects to issue in four tranches to repay its borrowings under a revolving credit facility.

The company said it plans to proceed with the divestiture of its occupational workwear business.

Write to Dave Sebastian at dave.sebastian@wsj.com

(END) Dow Jones Newswires

April 21, 2020 08:43 ET (12:43 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.