VF Corp's Struggling Performance Leads to Sharp Stock Decline: Analysis and Outlook
Thursday, 23 May 2024, 18:34
VF Corp's Troubles Continue
The apparel company VF Corp (NYSE: VFC) disappointed in its quarterly earnings report, with a 13% decrease in overall revenue to $2.4 billion. Key brands like Vans and The North Face saw sharp revenue declines, reflecting challenges in wholesale channels and weakening margins.
Financial Deterioration
- Adjusted gross margin decreased by 180 basis points to 48.4%.
- Operating margin became negative at -2.1%, significantly lower than the previous year's 5.6% profit.
- The company reported an adjusted loss of $0.32 per share, a stark contrast to the $0.17 profit a year ago.
CEO Bracken Darrell highlighted progress in the Reinvent transformation program, emphasizing inventory reductions as a key focus.
VF Corp's bleak financial performance in the latest quarter raises concerns about its recovery path.This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.