Shares of VFC Corp.
VFC,
fell 0.3% toward a nine-year low in premarket trading Wednesday, after the parent of Vans and The North Face apparel brands cut its full-year profit and sales outlook due to lower-than-expected fiscal second-quarter results. The company expects adjusted earnings per share for the quarter that ends September of 70 cents to 75 cents, well below the FactSet consensus of $1.00. For fiscal 2023, the company cut its adjusted EPS guidance range to $2.60 to $2.70 from $3.05 to $3.15, compared with the current FactSet consensus of $3.04. VFC also lowered its growth outlook for revenue, in constant dollars, to 5% to 6% from “at least” 7%, and said it now expects adjusted gross margin to be down 0.50 percentage points from previous guidance of “up slightly.” The company also provided financial targets for fiscal 2027, with EPS expected to grow at a five-year compounded annual growth rate (CAGR) in the high-single to low double-digit percentage range. The stock, which was in danger of the lowest close since February 2013, has tumbled 24.1% over the past three months while the S&P 500
SPX,
has lost 4.4%.
