May 21 - Apparel and footwear maker VF Corp ( VFC ) on
Wednesday missed fourth-quarter revenue estimates as a
challenging macroeconomic environment dampened its consumer
demand, sending its shares down about 11% in premarket trading.
While the Denver, Colorado-based company said it is
well-equipped to navigate the evolving global trade dynamics,
recession fears tied to a potential trade war have made
consumers more cautious with their spending.
Many clothing and accessories retailers have been scaling
back orders and freezing hiring in response to a wave of tariffs
introduced by U.S. President Donald Trump.
The tariffs have hit key manufacturing hubs including
Vietnam and Indonesia, which play a vital role in the global
supply chain for sportswear and apparel.
VF Corp ( VFC ) said it is exploring price actions as well as
ramping up production and shipments into the U.S., mirroring
peer Under Armour's ( UAA ) recent comments to raise prices on
some products to cushion a hit from looming tariffs.
VF Corp's ( VFC ) fourth-quarter revenue fell 5% to $2.14 billion
from a year ago, missing analysts' average estimate of $2.18
billion, according to data compiled by LSEG.
The company's attempts at a leaner product line and a
resolve to sell its products at full prices have further
alienated consumers despite heavy promotions and holiday season
boosts.
However, VF's adjusted fourth-quarter loss of 13 cents per
share was narrower than the estimated loss of 14 cents per
share, helped by the company's successful transformation
strategy aimed at $300 million in cost savings by fiscal 2025.