VF Corp are pessimistic. The US group (business owner of Vans, Timberland and The North Face) made public a few “preliminary, disappointing estimates as to their annual financial statements, closedlast March 28”. After withdrawing forecast regarding the current business year, the group, headquartered in Denver, put up for sale their work wear activity. Besides that, they decided to reduce top managers’ wages and augment current assets to cope with the crisis caused by the pandemic.
VF Corp are pessimistic
According to preliminary data, at the end of the business year (from April 2019 to March 2020) VF Corp revenues are going to reach 11.3 to 11.4 billion dollars. Considering such estimated figures, the company’s overall turnover will supposedly decrease by 17% to 18% compared to last year. Therefore, estimates are below the consensus issued by Zacks financial analysts, whose predictions were about 11.5 billion US dollars.
Sales and credit lines
A month ago, VF Corp withdrew their 2020 guidelines. Furthermore, they have now decided to sell off theirwork wear business activity: that is why the group is looking for a potential buyer. In the same way as other apparel industry players, the company has already implemented a plan to tackle Covid-19 emergency. They have reduced the wages of Chief Executive Officer Steve Randle as well as the salary of managers and members of the board. On top of that, the company also took one billion dollars from their credit line.