By midday, shares of VF Corp. were off 5.8% to $56.44.
The owner of apparel brands North Face, Vans, Lee and Wrangler, reported quarterly sales of $3.3 billion, 8% higher than in the fourth quarter of 2012. Increased sales were driven by double-digit growth in its outdoor & action sports, sportswear, international and direct-to-consumer businesses. That didn't stop from sending shares lower, as revenue missed expectations by around $50 million, according to analysts surveyed by Thomson Reuters.
Net income of 82 cents a share was short consensus by 2 cents.
Sales of leaderboard brand The North Face rose 12% over the year ago quarter, driven by 30% growth in direct-to-consumer channels and mid-single-digit gains in wholesale. Over 2013, the brand grew 7% to become VF's first brand to surpass $2 billion in global annual sales.
The company's second-largest brand, Vans, jumped 14% over the three months to December with double-digit growth across all regions. In the full year, sales jumped 17%, marking the first time it has exceeded $1.7 billion in annual global revenue.
"The combined power of our brands and platforms remains our greatest competitive advantage enabling us to push the envelope on product innovation to connect even more intensely with consumers and providing stellar returns to our shareholders," said CEO Eric Wiseman in a statement.Guidance for fiscal 2014 was also softer than anticipated. Management forecasts a revenue increase of 7% to 8%. Full-year revenue analyst estimates of $12.46 billion assumed a 9% jump in sales.
Per-share earnings between $3 and $3.05 were under expectations for $3.09 a share.