VF Corporation (NYSE: VFC), the parent company of popular brands such as The North Face, Vans, and Timberland, saw its shares plummet 17.04% in intraday trading on Wednesday following the release of its fourth-quarter fiscal 2025 results and first-quarter 2026 outlook.
The company reported quarterly sales of $2.14 billion, missing analyst estimates of $2.18 billion by 1.68%. This represents a 4.76% decrease compared to the same period last year. Despite the revenue miss, VF Corp posted a narrower-than-expected loss of $0.13 per share, slightly better than the analyst consensus estimate of a $0.14 loss.
Investors appear to be particularly concerned about VF Corp's outlook for the first quarter of fiscal 2026. The company expects Q1 revenue to decline between 3% and 5% compared to the previous year, signaling continued challenges in the retail environment. CEO Bracken Darrell stated that the company's transformation is underway to lower its cost base and strengthen the balance sheet, with initial targets of $300 million in gross cost savings already achieved. However, the combination of missed revenue targets and weak forward guidance seems to be driving the significant sell-off as shareholders reassess the company's growth prospects in a challenging market.
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