Vans, Timberland Owner VF's Shares Plunge 14% on 'Disappointing' Earnings
$VF Corp(VFC.US$ shares tumbled 14% after the footwear and apparel company behind brands including North Face, Timberland and Dickies reported revenue that even its own chief executive officer called "disappointing."
The negative results prompted Goldman Sachs analyst Brooke Roach to downgrade the stock to neutral from buy, while Wells Fargo analyst Ike Boruchow cut the price target to $14, from $17, according to two separate Benzinga reports.
The company reported fiscal third-quarter adjusted earnings of 57 cents per share on revenue of $2.96 billion. That missed the 78 cents adjusted earnings per share expected by analysts polled by Capital IQ, on revenue that they anticipated would reach $3.25 billion for the period ended Dec. 31, according to MT Newswires.
"Our third quarter top-line performance was disappointing," Chief Executive Officer Bracken Darrell said in the company's earnings release Tuesday. "This quarter marked the beginning of the next phase of our transformation plan: resetting the marketplace for Vans, reviewing our brand portfolio and continuing to build the organization of the future."
Righting the ship includes taking an "objective look at all brands" as the company considers selling some of its assets, Darrell said during the company's earnings call Tuesday, the transcript of which was posted on its website.
"We meant it when we said no sacred cows," CEO said, declining to give details on the progress in the review of its brands.
Even his promise for a turnaround for Vans failed to impress investors.
"We have a map back to growth for Vans," Darrell said. "I'm not ready yet to commit to when the brand will return to growth, but it will."
"We have a map back to growth for Vans," Darrell said. "I'm not ready yet to commit to when the brand will return to growth, but it will."
Wednesday's slump deepened the share price decline in the past year to more than 48%.
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