Shares of VF Corp the parent company of various apparel
Shares of VF Corp (NYSE:VFC), the parent company of various apparel, footwear and clothing lines such as The North Face, Wrangler and Lee Nautica, saw its shares end Monday’s trading session lower by more than three percent at $53.07.
The stock is now within striking distance of its 52-week low of $52.21 and is lower by by nearly 15 percent since the start of 2016.
On Monday VF reported its third quarter results in which the company earned $1.20 per share on revenue of $3.5 billion compared to Wall Street’s estimates of $1.15 per share and $3.63 billion. Management also slashed its fiscal 2016 outlook and expects to earn $3.13 per share after previously guiding to an earnings per share of $3.20.
Following VF’s earnings print the company hosted a conference call to discuss its results and outlook.
Here is a summary of notable quotes, courtesy of Seeking Alpha’s transcript of the call.
Eric Wiseman (CEO) on trends plaguing the company: “During the past four quarters, weak consumer spending, the warmest winter on record, retail bankruptcies and excess inventory in the off-price channel have had an outsized impact, particularly on our U.S. business.”
Wiseman on the company’s game plan moving forward: “Our approach is centered on the development of business scenarios assessing the risks and opportunities by brand and platforms and the playbook necessary to address them and then leveraging the full power of VF’s operational and financial disciplines. If this sounds like just the type of content that would fill an Investor Day, then you would be correct. It’s an event we’re targeting for sometime late in the first quarter of 2017, with more details to follow.”
Wiseman on M&A activity: “One of the things that we’re really proud of is that we haven’t made an acquisition in the last five years because we’ve had opportunities that we’ve walked away from based on price where we couldn’t deliver shareholder value and we got inactive when the market was frothy … here has not been a week that’s gone by in the last 12 weeks that we haven’t had at least one M&A-related meeting and discussion. So we’re as active as we could possibly be and that’s really all I can say.”
Wiseman on predicting winter: “We’ve also assumed a normal winter. And by a normal winter, we don’t mean a 1980s normal winter. We mean an average of the last three years to five years normal winter which includes some good ones and some bad ones. And if it sets up like that, which is our assumption – and that is a big assumption, we’re going to be just fine because we know our stores are working and we know we have the right products in them.”