Wei Fu Group Continued To Deteriorate In North America, Shares Fell 5%

The famous clothing company of the United States, VF Corporation (Vf Corporation), has a famous outdoor sports brand -The North Face, Vans and denim brand -Lee, Wrangler.

Recently,

The performance in the North American market continued to deteriorate, resulting in the third quarter's earnings not only worse than the market expectations, but also began to shrink. The group now has a further look at the prospects, and has lowered its annual performance target for the second time in just 3 months. On the 24 th Monday, it fell more than 5%.

As of the third quarter of October 1st, group net profit rose 8.4% to $498 million 500 thousand and earnings per share were $1.19. After adjusted tax deduction, earnings per share were $1.14, and overall income fell 1.2% to 3 billion 490 million dollars, less than the average Wall Street analyst expected $3 billion 630 million, with sales of $1.2% to 3 billion 460 million dollars.

At the end of August this year, the group has completed the sale of Contemporary Brands business to Delta Galil Industrial Company, so the business situation of these brands has nothing to do with the liquidation of the group's performance. The sale of this part of the business resulted in a loss of $5 million in the third quarter.

In the first 9 months of October 1st, net profit fell by 11.9% to 809 million 800 thousand US dollars, and the overall income was basically unchanged from the same period last year, at 8 billion 700 million US dollars.

The group's gross profit margin increased by 70 basis points to 48.4%, thanks to pricing, portfolio reduction and product cost reduction.

The Group Chairman and CEO Eric Wiseman pointed out that the group will continue to operate under the unstable circumstances of the global economy, including the weak retail market in the Americas, which is also the largest market of the group.

The group has strong balance sheets, strong brands and growing global influence. The group is confident of its ability to maintain short-term profitability, and the group will focus on improving its operation mode and creating more sustainable long-term growth opportunities for the brand with environmental advantages.

By product division, including The North Face,

The revenue of outdoor products department, including Timberland brand, increased by 2% to 2 billion 300 million US dollars.

Because of the weak consumer demand and the change of delivery orders, the income of jeans and garment departments, including Wrangler and Lee brands, fell by 6% to 701 million dollars.

Image clothing department revenue fell 3% to 282 million U.S. dollars, while

Sector revenue fell 13% to $141 million.

The group said that business revenue in the international region increased by 5%, and direct channel business revenue increased by 6%.

The group further downplayed the outlook and lowered its annual performance target for the second time. It expected revenue to rise by 2% to 12 billion 200 million US dollars. The revenue growth forecast before was 3% to 4%. Earnings per share were expected to rise 3% to 3.13 dollars, and the earnings per share forecast before increased by 5% to 3.2 dollars.

The group's share price has dropped nearly 19.5% in the past year, and the group's market capitalization is now $22 billion 10 million.