VF Corp missed expectations for its third-quarter results, and said its CFO Matt Puckett will step down later this year.
The company, which withdrew its annual forecasts in October and announced a cost reduction program, also said it had begun an in-depth strategic review of its Global Packs business, including brands such as Kipling and JanSport.
The Timberland parent, like other apparel and footwear makers, has struggled with weak wholesale demand this fiscal year as retailers trim their inventories amid soft discretionary demand in the United States. It reported a 16 per cent fall in the third-quarter revenue, hurt by weakness in its Vans sneaker brands in the United States and key markets in Europe and Asia. Revenue from Vans brand was down 28 per cent, while the Americas region was down 24 per cent overall.
VF Corp’s North Face business also saw a downturn in volumes, particularly in the United States. “We are seeing slowing consumer confidence and greater caution continuing in the wholesale channel,” said Puckett in a post-earnings call.
The company added that it saw soft demand during the key holiday shopping period, particularly outside of the promotional window. It said it has stepped up promotions in the country for its Vans sneakers, which have lost traction among US customers with revenues falling for the past several quarters. Third-quarter revenue came in at US $ 2.96 billion, compared with analysts’ average estimate of US $ 3.24 billion.
