The company’s 4th quarter closed with sales down by 11%. In other words, more than expected. Moreover, VF Corp (owner of The North Face, Vans and Timberland) states that the worse is yet to come. So much as to cause revenue during the April-June period to drop by more than 50%. The group closed its fiscal year as well: Vans grew by double-digits, while Timberland lost ground.
Worse than expected
VF Corp closed its fiscal year 2019/2020 with a quarter influenced by the Covid-19 pandemic. Revenue decreased by 11% at current rates and by 10% at constant rates, to be 2.1 billion USD against the 2.28 estimated by analysts. The quarter ended with losses of 483.8 million USD, compared to the 128.8 million USD profit of the same period of 2019. Vans’ sales at -6%, The North Face -13%, Timberland -18%. On a year-to-year base, VF’s revenue was of 10,5 billion USD: +2% at current rates and +4% at constant rates. Net income was of 679 million USD, down by 46%. Brand: Vans +11%, The North Face +5%, Timberland -5%.
The worse is yet to come
VF forecasts that revenue from the April-June period will decrease by over 50%. “Our results during the first 10 months of the 2019/2020 fiscal year were above our long-term goal expectations. Then the world changed after Covid-19”, stated the group’s CEO Steve Randle in a note. VF confirmed that its suppliers, third-party manufacturers, logistic and other were impacted by the pandemic, and that many of the proprietary locations worked at reduced capacity.