VF Corp raised its full-year forecast for revenue and profit on Wednesday, but it came in below market estimates as the apparel maker struggles to bring in sales with the COVID-19 pandemic shuttering stores in some of its major markets.
The Vans sneaker maker’s shares fell 8% in premarket trading as it posted a 5.8% drop in net revenue for the third quarter and said more than 60% of its stores were temporarily closed in Europe, the Middle East and Africa, with less than 10% of its outlets shut in North America.
Its digital revenue jumped 53% but that was not enough to counterbalance weak in-store sales, as fresh restrictions in its key US and Europe markets doused a short-lived sales rebound triggered by the lifting of earlier curbs.
VF now expects fiscal 2021 revenue between $9.1 billion and $9.2 billion, with the midpoint below the Refinitiv IBES estimate of $9.19 billion, even as it pointed to an about $125 million revenue boost from its recent acquisition of Supreme.
The owner of Timberland and The North Face brands also expects fiscal 2021 adjusted earnings per share of about $1.30, 6 cents below Wall Street expectations.
The company had previously forecast 2021 revenue of at least $9 billion and per-share profit of at least $1.20.
Denver, Colorado-based VF’s net revenue fell to $2.97 billion, missing the average analyst estimate of $3 billion, as even the traditionally busy holiday shopping season saw thin crowds.
However, excluding items, VF earned 93 cents per share, above the 90-cent estimate.
