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Investing.com – VF Corporation stock (NYSE:VFC) fell 3.3% Friday after the company’s second quarter earnings and sales came in below expectations and the company said all its brands are experiencing delays.
The owner of Timberland and The North Face brands retained its annual guidance but that brought no solace to investors.
Key supplier bases in Vietnam and China were shut during the quarter, leaving little choice of products for the company to bring to the market in sufficient quantity.
“Virtually all of our brands are experiencing delayed collections, styles and, in some cases, insufficient size assortment,” Reuters quoted VF Chief Financial Officer Matt Puckett as telling analysts in a call.
As Covid-19 uncertainty continues, VF said it expects ongoing disruption to its business operations.
Direct-to-consumer revenue rose 32% and digital revenue 24%.
No store was closed in any of the key markets by the end of the quarter though the company started July with 5% of stores being shut in China.
Second-quarter revenue from continuing operations rose 23%, to $3.2 billion. Adjusted profit per share jumped 66%, to $1.11.
Full year 2022 revenue is now expected to be around $12 billion, up 30%. Adjusted EPS is seen around $3.20.
