VF Corp. (VFC) was trading lower Thursday after the company reported third-quarter sales fell below estimates and earnings that topped expectations.
The apparel maker, which owns numerous brands like Timberland, The North Face and Vans, reported third-quarter revenue of $3.38 billion, topping last year’s total of $3.23 billion but falling short of analysts' expectations of $3.43 billion.
The company also reported adjusted earnings of $1.23 a share, topping estimates of $1.21.
For the fiscal year, the company now expects to report revenue of $11.75 billion, falling short of its own previous guidance of revenue of $11.8 billion and consensus estimates of $11.83 billion.
“Despite a mixed holiday season in the U.S., we're on track to deliver solid performance and are well positioned for continued growth and value creation in fiscal year 2021," said Steve Rendle, CEO of the apparel maker.
Earlier this week, the company announced that it was reviewing strategic alternatives for the “occupational” segment of its work force across nine of its brands, including Red Kap, Workrite, Walls and others.
The company also said it took charges in the quarter from recent Swiss tax reform legislation, a pension settlement charge, and the relocation of the company’s headquarters and certain brands to Denver. These charges had a negative impact of 10 cents a share in the quarter that wasn't reflected in the company’s adjusted earnings total.
Shares of VF Corp. were down nearly 5% in premarket to $90 a share. The stock has declined about 5% year to date.