Reuters
1 min read
In This Article:
-Apparel and footwear maker VF Corp on Wednesday missed fourth-quarter revenue estimates as a challenging macroeconomic environment dampened its consumer demand, sending its shares down about 11% in premarket trading.
While the Denver, Colorado-based company said it is well-equipped to navigate the evolving global trade dynamics, recession fears tied to a potential trade war have made consumers more cautious with their spending.
Many clothing and accessories retailers have been scaling back orders and freezing hiring in response to a wave of tariffs introduced by U.S. President Donald Trump.
The tariffs have hit key manufacturing hubs including Vietnam and Indonesia, which play a vital role in the global supply chain for sportswear and apparel.
VF Corp said it is exploring price actions as well as ramping up production and shipments into the U.S., mirroring peer Under Armour's recent comments to raise prices on some products to cushion a hit from looming tariffs.
VF Corp's fourth-quarter revenue fell 5% to $2.14 billion from a year ago, missing analysts' average estimate of $2.18 billion, according to data compiled by LSEG.
The company's attempts at a leaner product line and a resolve to sell its products at full prices have further alienated consumers despite heavy promotions and holiday season boosts.
However, VF's adjusted fourth-quarter loss of 13 cents per share was narrower than the estimated loss of 14 cents per share, helped by the company's successful transformation strategy aimed at $300 million in cost savings by fiscal 2025.
(Reporting by Aatrayee Chatterjee in Bengaluru; Editing by Shreya Biswas)
