VF Corp's Struggling Performance Leads to Sharp Stock Decline: Analysis and Outlook

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.