Like many other companies, VF Corp. (NYSE:VFC) is facing an uncertain future in the face of the SARS-CoV-2 coronavirus threat. As a result, the apparel maker on Monday withdrew its guidance for its 2020 fiscal year, which ends March 30.
VF Corp.'s latest estimates for the fiscal year forecast that it would book revenue of $11.75 billion -- 5% higher than its 2019 result. On the bottom line, the company was modeling for a non-GAAP (adjusted) net profit of roughly $3.30 per share, which would have amounted to growth of around 15%.
That set of projections was already a downward revision; previously, the company had anticipated $11.8 billion for revenue, with adjusted EPS in a range of $3.32 to $3.37.
In a press release, VF Corp. -- owner of brands such as The North Face and Vans -- wrote that the guidance withdrawal was the "result of the current unprecedented period of uncertainty, including the unknown duration and overall impact" of the COVID-19 pandemic. It said it will provide more information during its Q4 conference call, which is slated to take place in May.
The company also announced that it is drawing down $1 billion from a $2.25 billion credit facility it has at its disposal as a "proactive, precautionary measure. This will be sufficient to fund what the company expects to be its working capital requirements from now until the end of the first half of its coming fiscal year.
Investors didn't seem to be happy about these measures. On Monday, the consumer goods stock fell by almost 13% on the day, a steeper drop than those recorded by key stock indexes. However, on Tuesday, it rebounded by more than 14%, outpacing the gains of the S&P 500 for the day.