Key Takeaways
- VF Corp. reported worse-than-expected results for its fourth quarter, which it blamed on weak demand and too much inventory.
- The parent of North Face and Vans apparel brands posted a surprising loss per share in the quarter, and its revenue missed forecasts.
- VF also named a new chief financial officer (CFO).
- VF shares declined in Thursday trading after the earnings were released after the bell on Wednesday.
Shares of VF Corp. (VFC) fell to their lowest level in more than 15 years Thursday after the apparel company posted an unexpected loss per share for its fiscal fourth quarter and missed sales estimates on weak demand. The company also named a new chief financial officer (CFO).
The parent of North Face, Vans, and other apparel brands reported a fiscal 2024 fourth-quarter adjusted loss of 32 cents, while analysts had expected a small gain. Revenue slumped 13% to $2.37 billion, also short of forecasts.
All Brands’ Sales Slid in Quarter
Sales at North Face, its biggest moneymaker, were down 5% year-over-year to $814.3 million on U.S. wholesale weakness. Vans sales plunged 26% to $631.2 million, which the company said was consistent with the previous quarter and included “the additional impact from deliberate actions to further right-size inventories in the wholesale channel.” Sales at Timberland and Dickies declined 14% and 15%, respectively.
Gross margin tumbled 120 basis points (bps) to 48.4%, dragged down by “reset actions” and ongoing promotions.
New CFO Comes from Spotify
Chief Executive Officer (CEO) Bracken Darrell said VF made progress last quarter in its turnaround efforts, noting that it continued to reduce inventory, and has been “rebuilding the leadership team.” That included the appointment Wednesday of former Spotify Technology (SPOT) CFO Paul Vogel to be VF’s finance chief, starting in July. He replaces Matt Puckett, who had announced in February he would be stepping down.
VF shares have lost more than a third of their value this year. They traded 4.6% lower at $11.76 at 3:45 p.m. ET Thursday.
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