VF Corp (NYSE:VFC) reported quarterly earnings, and the stock responded by declining early Friday.
The Denver-based VF reports revenue decreased 11% (down 10% in constant dollars) to $2.1 billion driven by lower consumer demand as a result of the COVID-19 outbreak and related government actions and regulations.
Gross margin decreased 150 basis points to 53.1%, primarily driven by elevated promotional activity to clear excess inventory, partially offset by favorable mix shift toward higher margin businesses. On an adjusted basis, gross margin decreased 100 basis points to 53.9%.
Operating loss on a reported basis was $(257) million. On an adjusted basis, operating income decreased 51% to $87 million. Operating margin on a reported basis decreased to (12.2)%. Adjusted operating margin decreased 350 basis points to 4.1%.
Earnings (loss) per share was $(1.22) on a reported basis. On an adjusted basis, earnings per share decreased 70% (down 69% in constant dollars) to $0.10.
Said CEO Steve Rendle, "Through the first ten months of fiscal 2020 our business delivered results above our stated long-term growth objectives. Then the world changed for all of us as a result of COVID-19."
VF Corporation is one of the world’s largest apparel, footwear and accessories companies connecting people to the lifestyles, activities and experiences they cherish most through a family of iconic outdoor, active and workwear brands
Shares shuddered $2.94, or 3.5%, to $52.50
