VF Corp., owner of The North Face, Vans, Timberland, Wrangler, Lee and 7 for All Mankind, missed analysts’ estimates in the fourth quarter of 2015, attributing the decline to the slowdown in consumer demand.
Revenue for the fourth quarter and full year ended January 2, 2016 was down 4 percent on a reported basis. Adjusted earnings per share were $0.95 per share compared with $0.98 per share during the same period last year.
The warm weather was an issue for top VF brands The North Face and Timberland, which were both down 4 percent for the quarter. Wrangler was also down 4 percent due to poor performance in the western specialty business. Vans fared better, up 3 percent for the quarter.
For the full year, revenue increased 1 percent to $12.4 billion driven by strength in the outdoor and action sports category, as well as international and direct-to-consumer platforms. In 2015, outdoor and action sports revenue increased 3 percent to $7.4 billion. Adjusted earnings per share were in line with 2014 adjusted EPS of $3.08 per share.
Eric Wiseman, VF chairman and CEO, said, “With history as our teacher, we know that powerful brands and companies with strong balance sheets can capitalize on environments like this. That is exactly our intention.” He continued, “By focusing on our strengths – driving innovation into the marketplace, telling great stories to connect with consumers and operating with financial discipline – we will seize this opportunity to complete 2016 better positioned than we ever have been.”