VF Corporation (NYSE: VFC), a global leader in branded lifestyle apparel, footwear, and accessories, faced a challenging fourth quarter, falling short of Wall Street expectations. Following the release of its financial results, VFC shares plunged 7.7% in aftermarket trading.
The company reported an adjusted earnings per share (EPS) loss of -$0.32, a significant miss compared to the analyst consensus of $0.02. Revenue was also disappointing, coming in at $2.37 billion against an expected $2.42 billion.
In Q4, VF Corp experienced a 13% decline in revenue compared to the same period last year, with notable drops across its major brands. Vans® saw a steep 26% decrease, while The North Face® experienced a 5% decline. Challenges in rightsizing inventories and a difficult retail environment contributed to the weaker performance.
Despite these setbacks, VF Corp remains committed to its Reinvent transformation program, aimed at revitalizing core operations and reducing costs. President and CEO Bracken Darrell commented, "We closed the fiscal year with further inventory reductions, helping us deliver $1 billion in operating cash flow and over $800 million in free cash flow, exceeding our guidance."
Looking ahead, VF Corp is focused on driving momentum in key areas such as fixing the Americas, turning around Vans®, reducing costs, and paying down debt. The company is also making progress on strategic portfolio actions and leadership team enhancements, including the recent appointment of a new CFO.
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