VF Corp Falls 5% After Mixed Q3, Reduced Guidance

VF Corp VFC delivered mixed results for the third quarter. While earnings topped estimates, revenue fell shy of the expectations.

The company reported net income of $498.49 million, or $1.20 a share, on revenue of $3.49 billion for the third quarter. Analysts' expected EPS of $1.15 on revenue of $3.63 billion. While profit grew 8 percent, net sales fell 1 percent.

In the year-ago quarter, VF earned a profit of $459.86 million, or $1.06 a share, on revenue of $3.53 billion.

The company's chairman and CEO, Eric Wiseman, said, "With a strong balance sheet, powerful brands, and a growing global presence, we have great confidence in our ability to maintain near-term profitability, yet we're not satisfied with our third quarter results. We remain sharply focused on operational improvements and taking advantage of this environment to accelerate strategies to create sustainable, long-term growth opportunities for our brands."

Moving ahead, VF reduced its EPS guidance from 5 percent increase to $3.20 to 3 percent increase to $3.13 for the full year. Similarly, revenue growth increase has been slashed from 3–4 percent to 2 percent to approximately $12.2 billion. Street is looking for an EPS of $3.20 on revenue of $12.43 billion.

In the pre-market trading, the stock fell 4.92 percent to $51.98.