Vans parent VF Corp's tariff warning dims upbeat quarterly sales forecast

By Sanskriti Shekhar

Jan 28 (Reuters) - Apparel and footwear shaper VF Corp forecast fourth-quarter gross supra analysts' estimation connected Wednesday, but shares dropped 7% ​after executives said tariffs were "just starting to hit" its business.

The Vans ‌parent, which sources astir 85% of its products for merchantability successful the U.S. done Southeast Asia ‌and Central and South America, has taken respective steps to mitigate the interaction of tariffs, including ramping up accumulation and shipments, moving with suppliers to little costs and taking selective terms hikes.

But those measures volition not beryllium capable to offset ⁠the astir $100 cardinal nett deed ‌the institution expects successful fiscal 2026.

"Tariffs are conscionable starting to deed us. We've talked astir our quality to mitigate those ‍tariffs wrong fiscal 2027 and nothing's changed connected that astatine all," CEO Bracken Darrell said connected an net call.

The cautious commentary eclipsed a robust holiday-quarter performance, supported by caller ​collections that drove an 8% maturation astatine some The North Face and ‌Timberland brands crossed the Americas arsenic good arsenic Europe and Asia regions.

The institution has been simultaneously moving connected turning astir its struggling Vans unit, which reported an 8% autumn successful sales, portion streamlining operations by shedding underperforming units specified arsenic Dickies past year.

"Vans is inactive grappling for a turnaround, peculiarly successful the ⁠key U.S. market, there's small denotation of ​a instrumentality to maturation successful income oregon store ​traffic successful sight," said Sky Canaves, expert astatine Emarketer.

VF Corp reported third-quarter gross of $2.88 billion, compared with analysts' mean estimation of $2.76 ‍billion, according to information ⁠compiled by LSEG.

Excluding one-time items and contributions from the Dickies brand, it posted adjusted net of 58 cents per share, topping the estimation ⁠of 45 cents.

The institution expects fourth-quarter gross successful the scope of level to up 2%, portion ‌analysts expected a 2.6% decline.

(Reporting by Sanskriti Shekhar and Savyata ‌Mishra successful Bengaluru; Editing by Shilpi Majumdar)