VF Corp. Falls on Guidance, Kontoor Brands Spinoff to Be Completed Wednesday


VF Corp.  (VFC - Get Report) , the parent company of apparel brands Vans, The North Face and Timberland, was falling Wednesday after issuing full-year guidance below Wall Street expectations. 

The Greensboro, N.C.-based company reported fiscal fourth-quarter earnings of $128.8 million, or 60 cents a share, on revenue of $3.21 billion. Analysts were expecting the company to report earnings of 58 cents a share on revenue of $3.2 billion.

But the company said it expects full-year earnings between $3.30 and $3.35 a share on revenue between $11.7 billion and $11.8 billion. Wall Street expected the company to report earnings of $4.11 a share on revenue of $14.5 billion. 

"As we enter fiscal 2020, our portfolio is well positioned, and our growth and momentum are strong, fueled by the investments we are making in support of our long-term strategy. The bold decisions we continue to make to evolve our company underpin the transformational journey we're on to deliver on our commitment to be a purpose-led, performance-driven and value-creating enterprise capable of delivering sustainable long-term shareholder value," said CEO Steve Rendle. 

The company also announced that it was finishing the separation of its Kontoor Brand from the main business. VF stockholders will receive one share of Kontoor Brands for every seven shares of VF stock they own. The distribution of shares is expected to be completed at the end of the day Wednesday. 

Following the separation, Kontoor will be an independent, publicly traded company, and VF Corp. will retain no ownership interest in the company. Kontoor will trade under the ticker "KTB."

Shares of VF Corp. declined 3.75% to $88.67 in trading.

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