Outdoor apparel, sportswear, and footwear giant VF Corporation failed to meet expectations with its latest earnings report on Friday.
The Denver-based company — which owns Timberland, Vans, Supreme, and The North Face — generated $3.2 billion in revenue in fiscal Q2, missing estimates of $3.5 billion.
VF’s numbers in individual segments and regions were a bright spot.
- No stores were closed in North America, Europe, the Middle East, or Africa in Q2.
- Its outdoor segment posted $1.5 billion in revenue, up 31% year-over-year.
- The company’s active segment — led by Vans — generated $1.34 billion in Q2, up 16%.
- Full-year revenue is expected to reach $12 billion, a 30% increase compared to FY2021.
VF’s wholesale business has been hampered by shipment delays and logistical challenges.
“Virtually all of our brands are experiencing delayed collections, styles, and, in some cases, insufficient size assortment,” said VF CFO Matt Puckett on an earnings call.
Roughly a quarter of the company’s products are made in Vietnam, which has had production factories shut down since July due to COVID-19 outbreaks.
VF is employing expedited freight as needed in an effort to alleviate the supply chain issues.