VF Corp’s share price drops as earnings lag estimates
US footwear and apparel company V.F. Corp.’s share price fell 4.76% on Friday after an earnings report failed to live up to analysts' forecasts.
VF Corp. closed down $3.33 at $70.74 in New York after the company reported its latest earnings.
The price drop came in the face of a 80.76% rise in net income to $464.05m (£333.58m) from $256.72m a year earlier. Earnings per share (EPS) rose 78.79% to $1.18 from 66 cents.
V.F. Corp. is the parent company of Vans and The North Face.
On an adjusted basis, EPS rose 66% to $1.11, including a 2 cent contribution from acquisitions. But the adjusted EPS total missed a FactSet analyst consensus estimate of $1.15.
The company continues to be plagued by pandemic-related disruptions, said CEO Steve Rendle.
“We're very pleased with our broad-based strength across our portfolio and then more importantly, the execution of our teams, particularly in this changing and challenging environment,” said Rendle on a conference call with analysts. “We are seeing improving outlook across the majority of our brands and regions, and I take a lot of pride in our organisation's ability to continue to adjust through these unprecedented times.”
Revenue from continuing operations increased 23% year-over-year to $3.2bn.
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