North Face Owner Falls After Calling Retail Climate ‘Sluggish’by
VF Corp., owner of the North Face, Wrangler and Nautica clothing brands, fell in early trading after saying a “sluggish” domestic retail environment will weigh on earnings this year.
Profit will be $3.13 a share this year, the Greensboro, North Carolina-based company said Monday in a statement. That’s down from a previous projection of $3.20 and trailed analysts’ $3.19 average estimate.
The reduced forecast signals that a consumer malaise that hurt some apparel companies and retailers earlier this year may be lingering. Weak traffic at many U.S. malls also has crimped sales.
“We continue to operate in an uneven, global economic environment including especially sluggish retail conditions in the Americas, our largest market,” Chief Executive Officer Eric Wiseman said in the statement.
The shares slid 4.7 percent to $52.12 at 7:45 a.m. in early trading in New York. The shares already had dropped 12 percent this year through last week.