Shares of skateboard shoemaker
were plunging more than 21% in premarket trading after the company posted disappointing fourth-quarter results, including a pro forma loss per share more than double analyst estimates.
The company said that, excluding one-time charges of $8.6 million relating to writedowns, the closure of a skatepark in Bakersfield, Calif., and Latin American operations, it lost 20 cents a share in the fourth quarter, compared to year-ago earnings of 16 cents a share. Including the charges, Vans lost 68 cents a share.
Vans' pro forma loss was more than double the consensus estimate provided by Thomson Financial/First Call of a loss of 9 cents a share for the quarter.
Net sales dropped to about $60 million for the quarter from $85.2 million a year ago. Same-store sales dropped by 8%.
In a press release, Vans also said its president of retail, Neal Lyons, will resign. He will be replaced by current vice president of retail operations Kevin Bailey.
Vans CEO Gary Schoenfeld said, "Obviously this is a disappointing culmination to what has turned out to be a tough year since September. In addition to what we have previously discussed, we are suffering from much higher rates of returns and markdowns in U.S. wholesale."
The company also lowered its guidance going forward, saying it now sees first-quarter EPS of 25 cents to 30 cents on sales of $115 million to $120 million, well below the consensus estimate of EPS of 45 cents on sales of $124.67 million. For the year, the company expects EPS of 40 cents to 50 cents, also well below estimates of 71 cents.
Shares of Vans were fell to $9.99 in Instinet premarket trading after closing at $12.73 Thursday.