VF Corporation Falls After Cutting Its Revenue Outlook

VF Corp. slumped after cutting its revenue outlook for the year amid a slowdown in its activewear brands and international sales.

The maker of Vans and The North Face apparel now expects revenue of about $11.85 billion for the fiscal year ending around April 1, down from a prior view of about $12 billion. Adjusted gross margin is now projected to be at least 55 percent, down 1 percentage point from the company’s October forecast.

The shortfall appears to be in part due to VF’s Active division, along with slowdowns in international revenue, direct-to-consumer and the digital business. In October, VF said Active sales in China were hurt by weaker digital traffic for non-domestic brands. On Friday, the company lowered its outlook for revenue growth across all regions outside the US, with the biggest cuts coming in Asia-Pacific.

Shares of VF fell 5.3 percent in premarket trading at 8:56 a.m. New York time. The stock had fallen 15 percent in the previous 12 months, among the worst performers in the S&P 500 Consumer Discretionary Index.

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