What happened?
Shares of V.F. Corporation (VFC -0.31%), a lifestyle-apparel company better recognized through its brands including North Face, Timberland, Vans, Lee, Wrangler, and Nautica, among others, are down 10% as of 3:05 p.m. EST after fourth-quarter earnings and sales disappointed investors.
So what
VF Corp.'s revenue checked in 20% higher year over year, to $3.65 billion, thanks in part to a $247 million contribution from its Williamson-Dickie acquisition. Excluding that, revenue was still up 12% on a comparable basis. Despite the gains, that number fell slightly short of analysts' estimates calling for $3.66 billion. The bottom line also barely missed estimates, checking in with adjusted earnings of $1.01 per share compared to analysts' call for $1.02 per share.
Despite VF Corp. falling just short of estimates, its Chairman and Chief Executive Officer Steve Rendle had a positive outlook:
I am confident that our investments will accelerate growth and drive even stronger long-term value for shareholders. We remain in the early phase of a multi-year journey to become a purpose-led, agile, consumer-centric organization. I am pleased with our early progress and look forward to building on our momentum in 2018.
Image source: Getty Images.
Now what
VF Corp. also announced its decision to sell its Nautica brand. The company has already reclassified the business as "discontinued operations" and hopes to find a buyer for the brand. It's currently in talks with a number of potential buyers.
Despite the stock gaining 39% in 2017, investors weren't thrilled with the quarter. This sentiment could be attributed to the pessimism in U.S. apparel retail, in general.
