VF Corp., the apparel and footwear manufacturer behind brands like Vans and The North Face, reported fourth-quarter revenue below expectations, citing mounting macroeconomic headwinds and tariff uncertainties. Revenue dropped 5 per cent year-over-year (YoY) to US $ 2.14 billion, falling short of the US $ 2.18 billion estimated by analysts, sending shares down nearly 11 per cent in premarket trading.
The company took responsibility for diminished consumer confidence and cited fears of recession and the rise in trade tensions. Tariffs are also affecting manufacturing areas of significance such as Indonesia and Vietnam, with supply chains being disrupted and a wide array of retailers cutting orders and hiring for now.
Despite the headwinds, VF Corp. stated confidence in its capability to become accustomed to shifting trade conditions. The company is determining selective price raises and ramping up production and shipments to the US, a definite strategy aligned with industry peers like Under Armour, aiming to soften the blow of tariff hikes.
The company’s major decision to make its product lines and give emphasis to full-price sales has also weighed on consumer demand, even in major promotional windows.
The company remains committed to its transformation plan, targeting a total savings of US $ 300 million by fiscal 2025.
VF’s results underline the significant challenges confronting the apparel industry—rising inflation, changing trade policies, and cautious consumer spending.
