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April 21, 2020

VF Corp warns of full-year sales decline

VF Corp has seen its share price fall as the US apparel giant said it expects to report lower sales for the full year. 

By Michelle Russell

VF Corp has seen its share price fall as the US apparel giant said it expects to report lower sales for the full year. 

For the year ended 28 March 2020, the owner of the Vans and Timberland brands, is expecting revenue from continuing operations of around US$11.3bn to $11.4bn, including the contribution of the company’s occupational workwear business.

Last year the company reported revenues of $13.85bn. VF saw its share price fall 3.19% today (21 April) on the news. 

Operating income from continuing operations on a reported basis is expected at around $1bn to $1.1bn, including the contribution of the occupational workwear business. On an adjusted basis, the company is expecting $1.4bn to $1.5bn. Last year, VF Corp posted operating income of $1.68bn.

The company says it intends to proceed with the divestiture of its occupational workwear business as announced in January and is actively engaged with prospective buyers.

In a separate statement, VF Corp is said it plans to offer, subject to market and other conditions, senior notes that are expected to be issued in four tranches in a public offering.

The company intends to use the net proceeds from the debt offering to repay the borrowings under its senior unsecured revolving credit facility, and any remaining net proceeds for general corporate purposes.

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