VF reports Q3 loss, revenues down 16 percent

VF Corporation reported a third quarter revenue decline of 16 percent or 17 percent in constant dollars to 3 billion dollars.

The company’s loss per share was 11 cents, while adjusted earnings per share dropped to 57 cents.

The company also announced a quarterly per share dividend of 9 cents and reiterated FY24 free cash flow guidance of approximately 600 million dollars.

Commenting on the trading update, Bracken Darrell, VF’s president and CEO, said in a statement: "Our third quarter top-line performance was disappointing. However, we are confident the actions we are implementing as part of Reinvent will enable VF to stabilise and then grow revenue and improve operational performance across brands and regions."

The North Face brand revenues were down 10 percent and down 11 percent in constant dollars); while in the first nine months, revenue was up 4 percent or 3 percent in constant dollars.

The company said, Vans brand was down 28 percent or 29 percent in constant dollars), inclusive of deliberate actions taken to right-size inventories in the wholesale channel.

The North Face brand’s sales in the APAC region rose 26 percent or 28 percent in constant dollars, including Greater China up 31 percent or 32 percent in constant dollars.

Vans Americas region declined 24 percent or 25 percent in constant dollars, international business down 5 percent or 8 percent in constant dollars, APAC region was up 2 percent or 3 percent in constant dollars, including Greater China up 5 percent or 7 percent in constant dollars. EMEA region revenue was down 7 percent or 12 percent in constant dollars.