Shares of jeans maker VF Corp. ( VFC) were dropping in afternoon trading after the company said second-quarter earnings could fall by 20% to 25%, much steeper than its original forecast. The company cited a challenging retail environment. The company's shares were down about 10% recently at $35.03. VF had initially expected earnings to be flat to down 5%, excluding items, in the quarter ending July 5. Analysts expect the company to earn 76 cents a share. VF earned 79 cents a share in the second quarter last year, including restructuring charges totaling 3 cents a share. Sales could be down 5% to 7%, lower than its previous expectation of flat sales. Last year's quarterly sales were $1.16 billion. The company said aggressive moves by its retail customers to control inventories have impacted sales across most of its businesses. "Our second quarter basically reflects external factors that are affecting most retailers and suppliers across most product categories and channels of distribution," said Chief Executive Mackey J. McDonald. The company didn't revise its outlook for the second half of the year. VF makes the Lee and Wrangler brands of jeans, as well as The North Face brand merchandise.